BIFR package for DPL

NEW DELHI, DEC 23: The Board for Industrial and Financial Reconstruction (BIFR) has sanctioned a Rs 67.33 crore draft rehabilitation scheme...

NEW DELHI, DEC 23: The Board for Industrial and Financial Reconstruction (BIFR) has sanctioned a Rs 67.33 crore draft rehabilitation scheme to revive Maharashtra-based ailing private sector company, Deve Paints Limited (DPL), formerly known as Garware Paints Ltd.

The proposal envisages re-starting the unit which has been closed since November 1994, retrenchment of the entire labour force under VRS and re-employing selectively on a new scale and settlement of dues with secured creditors in one to three years.

The cost of the scheme includes repayment of secured creditors worth Rs 42.45 crore, VRS settlement to the tune of Rs 13.30 crore and working capital expenses of Rs 5.24 crore.

During a recent BIFR hearing, it was agreed that the scheme would be financed by the promoter’s contribution worth Rs 21.34 crore and another Rs 41.46 crore would be brought in by the sale of assets. It has been assessed that after carrying out essential repairs, the plant would re-start operations by April 1998. Deve Paints was taken over from Garware Paints Ltd by P R Rajarathinam and Associates of the Agni group in November 1994.