New Delhi, Oct 15 (ANI): Union Cabinet today approved the public sector undertaking Andrew Yule's exit from the joint venture Phoenix Yule for a consideration of Rs 62.82 crore.
Andrew Yule is a Public Sector Understanding under the aegis of DHI and is engaged in manufacture of industrial fans, tea processing machinery, industrial pollution control equipment, system and allied products.
This decision is a follow-up to the Cabinet decision of February 22, 2007 on the issue of restructuring of AYCL.
Funds raised by way of disinvestment of AYCL's share in PYL will go towards repayment of a part of interest free GOI loan of Rs.87.06 crore which was extended to AYCL as a part of the restructuring package of AYCL.
The belting division of AYCL was spun off and a joint venture firm with PHX having 74 per cent equity and AYCL 26 per cent equity was formed on November 19, 1998.
PYL is one of the largest manufactures of conveyer belts in India. (ANI)