According to the draft rehabilitation scheme circulated by the Board for Industrial and Financial Reconstruction (BIFR), the government would induct fresh equity of Rs 31 crore while the rest of the Rs 60 crore revival plan would be sourced through sale of land and government loans. The bulk of the revival cost, about Rs 44 crore, would go into reviving the currently non-operational IRP division while over Rs 12 crore would go into the modernisation-cum-expansion plan of the tyre division of TCIL.

The old tyre plant with a 1.28 lakh units a year capacity would be restarted after a capital expenditure of Rs 2.43 crore.

The new plant of the tyre division, set up with a technical collaboration with techno-export foreign trade company limited of erstwhile Czechoslovakia, wouldincrease production from 6.2 lakh tyres per annum in 2001-02 to 7.4 lakh units by 2003-04. It would also manufacture steel belted and nylon cord radial tyres by 2006 after Rs 2.15 crore capital investments.

TCIL's liabilites stand at Rs 29 crore in respect of its currently non-operational IRP division as on March 31, 1999. It has mainly arisen due to non-payment of proportionate share of overhead expenses. The manpower strength at the tyre division is 1,265 and at IRP division is 579.

The IRP division of TCIL is expected to almost double its production to nine lakh metres per annum by 2001-02 from its current annual capacity of 4.8 lakh metres while the new products would include nylon and polyster braided hoses. At the same time, conveyor belting production would be increased to 96,000 metres per annum from the current 22,500 metres by the same year.

Importantly, the draft scheme envisages that the government would have to waive off non-plan loans of Rs 19.11 crore and accrued interest there on Rs26.72 crore for the tyre division and Rs 67.31 crore and accrued interest there on of Rs 85.83 crore for the IRP division. For the tyre division, the government would also reschedule plan loans of Rs 65.74 crore so as to be repaid in nine suitable annual instalments commencing from March 31, 2001.