Indian govt approves plan to revive BIC's woolen mills (Indian)

The Government of India has approved a plan for revival of the woolen mills under the Kanpur-based British India Corporation (BIC), a public sector undertaking.

 

The revival plan includes paying of all salary and statutory dues to employees for 2012-13 and introduction of voluntary retirement scheme (VRS).

 

The Cabinet has approved a sum of Rs. 171 million for launching the VRS in view of the surplus workforce at the company.

 

The Cabinet decision is, however, subject to approval from the Uttar Pradesh government.

 

In order to unencumber the properties of BIC, the Government has also approved repayment of interest-free bridge loan of Rs. 115 million towards interest liability to the State Bank of India.

 

Subsequently, the surplus freehold land at Dhariwal in Punjab could be sold and the funds so realized would be utilized for revival of the BIC’s Dhariwal unit.