Rs 660 cr restructuring package for Andrew Yule: Dev

Kolkata, May 30 (UNI) In a bid to help Andrew Yule turnaround, the Centre has approved a fresh restructuring plan to revive Andrew Yule&Company Ltd (AYCL) and granting a package of Rs 600 crore.

Union Minister for Heavy Industries&Public Sector Enterprises Santosh Mohan Dev told UNI that undre this scheme, the Electrical&Engineering divisions of AYCL will be hived out into separate companies to make them sustainable.

Mr Dev had held a review meeting of the ongoing revival process of AYCL.

The minister was accompanied by Heavy Industries&Public Enterprises secretary R C Panda and other senior officials.

Speaking about the details of the revival package, the Minister said Rs 660 crore revival package consists of fresh cash infusion of Rs.87 crore, bank gurantee of Rs.111 crore, waivers of Rs 32.59 crore. Around Rs 122.16 crore would be converted from loan to equity. An additional amount of Rs 80 crore would come from the disinvestment of shares in the group companies.

While the restructuring plan was being processed for approval, the Union government released an amount of Rs 95.33 crore to settle the outstanding wages and statutory dues considering the hardship of the employees because of outstanding payment.

The ministry has carried out a Strategic Restructuring of AYCL, he added.

The Electrical and Engineering divisions would now be hived out of AYCL into separate companies in order to make them competitive and sustainable.

The Ministry has fixed for AYCL group a sales target to Rs 1129 crore and a gross margin target of Rs92 crore for the current financial year. The company has signed an MOU with the Ministry to achieve this target.

UNI