BIFR package for Eastern Telecom

NEW DELHI, April 19: The Board for Industrial and Financial Reconstruction (BIFR) has sanctioned a Rs 3.63 crore rehabilitation scheme for t...

NEW DELHI, April 19: The Board for Industrial and Financial Reconstruction (BIFR) has sanctioned a Rs 3.63 crore rehabilitation scheme for the joint sector company Eastern Telecom and Technology Limited (ETTL) envisaging a change in the product mix and a one-time settlement with banks.

The company, a 85:15 joint venture between Dev Brat Gupta and Satya Vrat Gupta and Up Hill Electronics Corporation (UPHEC), would enhance its production capacity of push button telephones (PBTS) to 2.5 lakh units per annum from the present 1.8 lakh units.

Moreover, the company proposes to focus on manufacturing of PBTS for supply to department of telecommunications. The scheme sanctioned by BIFR recently said the company would reduce the high debt burden with waiver of penal interest and liquidated damages amounting to Rs 2.25 crore and waiver of simple interest of Rs 3.81 crore.

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The company has not been in operation since June 1997. The cost of the sanctioned scheme would be borne through sale of excess land (Rs 35 lakh)and promoter’s funds (Rs 3.28 crore). The scheme does not envisage any additional capital expenditure as the existing facilities are capable of manufacturing the new products.

The promoters are also to pay Rs 7 lakh upfront for the Rs 5 lakh convertible cumulative preference shares held by ICICI. The promoters would also settle the dispute with ESI and clear the provident fund dues.

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