Burnpur Works of Indian Iron and Steel Company
(IISCO) is not in a good condition due to technological obsolescence,
ageing of plant and equipment, outmoded technology and lack of
necessary capital inputs. Its saleable steel production has come
down to 302 thousand tonnes per annum in 2001-02 as compared to
387 thousand tonnes per annum in 1991-92 and its accumulated losses
as on November 30, 2002 are Rs. 897.48 crore.
Directed by Board for Industrial and Financial
Reconstruction (BIFR), the Steel Authority of India Ltd. (SAIL)
has submitted a rehabilitation proposal, based on the Government’s
approval to the Industrial Development Bank of India (IDBI) ,
the operating agency for IISCO. The scheme is currently under
examination by the IDBI.
Government has approved a revival package
for the company which inter alia includes grants for financing
a VRS in Kulti Works, which is to be closed down. Provision of
Government guarantees to raise money for financing VRS in Burnpur
Works, mines and collieries, as well as for capital expenditure
in these units, has been made. This is, however, subject to the
Government of West Bengal conveying its approval to provide waiver
of past dues and also exemption from payment of sales tax (without
any monetary ceiling), electricity duty, royalty and cess and
municipal tax for the next five years.
This information was given by the Minister
for Steel Shri Braja Kishore Tripathy in a written reply in the
Lok Sabha today.
