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He said his ministry is now closely examining the capital restructuring proposal (CRP) submitted by the plant management. "The ministry’s decision would definitely safeguard the interest of the employees and also the country’s economy," Patnaik added.

RINL, which owns the Vizag Steel Plant (VSP), submitted the CRP to the centre, based on the recommendations of I-Sec. The CRP has sought conversion of Rs 33.47 crore of government loans into preference shares and roll over of government loans of Rs 509 crore for five years. The CRP also seeks an interest holiday on government loans for five years from fiscal 1994-95.

RINL had extended the financial year 1996-97 by sixmonths to September 30, 1997, expecting the centre to clear the Rs 542-crore CRP. Chairman-cum-managing director BN Singh is hopeful of reviving RINL with this package.

Jayamkondam financial bids opened

CHENNAI: Reliance, Larsen & Toubro and PT Wismakarya of the Polysindo group are in the race for the 250mw lignite-based Jayamkondam power project, financial bids for which were opened last week. According to official sources, all three bids qualified as no party’s bids were rejected. However, it seems that the bidders have given split rates covering a 30-year period for the integrated project.

10 pc rise in gold demand likely

CALCUTTA: Gold demand in the country is expected to grow by 10 per cent in fiscal 1998-99 (April-March) over the previous fiscal year, a World Gold Council (WGC) official said.

"We are expecting a growth of 10 per cent in tonnage terms this year over the last year," WGC Regional Chief Executive, Rolf W Schneebeli, said. Schneebeli, who is based in Dubai and looksafter the industry-funded WGC’s operations in the Middle East and India, said the country’s total demand for gold was 737 tonnes in 1997/98.

"Of the 737 tonnes, 100 tonnes were of old jewellery, which was recycled, eight tonnes was India’s own production and the rest was imported in bars," he said. Schneebeli said India would likely emerge as the largest gold jewellery exporter in the near future.

Kia to be auctioned

SEOUL: South Korea plans to sell off Kia Motors Corp and its affiliate Asia Motors Corp together at an auction instead of nationalising them, according to media reports on Saturday. The reports said that industry and energy minister Park Tae-young and chief presidential economic aide Kim Tae-dong agreed to the plan on Friday.