IRPL merges with IRSL

New Delhi, May 16 (UNI) Indo Rama Synthetic Ltd (IRSL) today announced the merger of Indo Rama Petrochemicals Ltd (IRPL) with the company.

''The merger has been done keeping in mind the interdependencies between the two entities,'' IRSL Chairman and Managing Director O P Lohia told reporters here.

He added the merger will effect the cost parameters and value proposition of the companies and provide capture for the loss of various cost elements.

After the merger, IRSL will get power at the rate of Rs 3 per unit against the existing Rs 4.

The merger will provide a total savings of Rs 25 crore per annum, Mr Lohia said and added that the benefit from the savings in lieu of service tax and other adjustable tax to the tune of Rs 5.60 crore.

The company, however, played down any further expansion due to Central Value Added Tax (CENVAT) accumulation of Rs 150 crore during the current expansion programme undertaken in Nagpur.

UNI