NEW DELHI, Feb 4: The Board for Industrial and Financial Reconstruction (BIFR) has sanctioned a Rs 43-crore draft rehabilitation scheme to revive the private sector Reliance Silicones (India) Ltd (RSIL).The scheme envisages speedy implementation of its Khopoli project for manufacturing chlorosilanes, a raw material for the main plant, tying up of need-based working capital facilities along with raising margin money and restructuring long-term liabilities.
The cost of the Khopoli project of the Mumbai-based company is estimated at Rs 25 crore. Another Rs 10 crore has been earmarked for advances to be given for acquisition of warehouses and deposits, which would be maintained with various government departments.
The Central Bank of India is expected to provide term-loan assistance of Rs 12.50 crore for part-financing the rehabilitation scheme.
During a recent board hearing, the promoters agreed to infuse Rs 25.49 crore which is about 60 per cent of the cost of the scheme excluding monetary value ofsacrifices by financial institutions and banks.
The promoters of Reliance Silicones have agreed to convert existing unsecured loans to the extent of Rs 25 crore into equity share capital latest by March 1998.
They have also agreed to induct Rs 25.49 crore as interest-free unsecured loans repayable after the rehabilitation period to part-finance the cost of the scheme. The board observed that a large portion of the company's product is presently being exported and it was presumed that in future, the exports would further increase. According to profitability projections, if the production at Khopoli gets established as per schedule, the company would start earning net profits from the very first year.
The company's net worth would turn positive by the end of financial year 1999-2000. The accumulated losses would be wiped out during the financial year 2001-02.
RSIL was incorporated in 1979 at Vashi, New Mumbai, for manufacturing silicones and other downstream products and went into commercial productionin April 1981.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
