BIFR approves merger of Shivaji Works with Kirloskar Oil Engines

PUNE, Oct 14: The Board for Industrial and Financial Reconstruction (BIFR) has given an in-principle’ approval to the merger of the 98-year-old Shivaji Works Limited with Kirloskar Oil Engines Limited (KOEL). As KOEL is awaiting finally approval from BIFR the company has decided to postpone its annual general meeting (AGM) for year ended March 31, 1999.

Meanwhile, KOEL has announced an interim dividend of 35 per cent. Koel has presented a proposal for the rehabilitation of Shivaji Works Ltd to the BIFR for merging it with KOEL. The company has decided to schedule the AGM after completing the necessary formalities in February 2000.

Solapur-based Shivaji Works had been incurring huge losses for the last three years. The work force was reduced by 50 per cent after a voluntary retirement scheme.

The BIFR had appointed ICICI as the operating agent to initiate measures for rehabilitation of Shivaji Works Ltd. ICICI had sought applications of companies willing to run the company. With this regard, KOEL, Pune, had submitted a proposal of merging Shivaji Works into KOEL which has been approved.