Cabinet approves restructuring of Bird Group of Companies
11 Sep 2009
The union cabinet has approved a scheme for restructuring of the Bird Group of Companies by converting units under BGC into government companies/PSUs and vesting their management control on RINL in a subsidiary-cum-holding structure.
The restructuring of BGC, a company under the ministry of steel, is aimed at making the units under the group economically viable and sustainable.
The government loan and accrued interest thereon would be waived off. The commercially unviable companies would be wound up and their employees will be adjusted in other sister companies under the group or would be offered VRS, an official release satd.
The restructuring proposal is mutually beneficial to both RINL and BGC, it added.
Under the restructuring proposal, Orissa Minerals Development Company Limited (OMDC) and Bisra Stone Lime Company Limited (BSLC) will be made subsidiary companies of Eastern Investment Limited (EIL).
EIL will be made a subsidiary of RINL thus bringing EIL, OMDC and BSLC under the umbrella of RINL.
