Decision on fate of sick PPCL today
New Delhi: The Union Cabinet will take a decision on the fate of loss-making public sector unit Pyrites, Phosphates & Chemicals Ltd (PPCL) on Thursday. The net worth of the company has been eroded and efforts to revive it bore no fruit. PPCL was referred to the Board for Industrial & Financial Reconstitution (BIFR) in November 1999. BIFR appointed State Bank of India (SBI) as operating agency. But, the company could not be revived. It was referred to a group of ministers (GoM) in May, 2001 which recommended hiving off or closure of the units at Dehradun and at Saladipura in Rajasthan, and voluntary retirement scheme for workers. The Cabinet will take a view on the recommendations of the GoM and on the viability of selling the unit at Amjhore in Rohtas district in Bihar. As per the website of the company, in which the company’s financials till March 31, 2001, are available, the accumulated losses mounted to Rs 353.8 crore while the turnover was Rs 12.67 crore by the end of 2000-01 fiscal. However, the balancesheet shows a profit of Rs 108.3 crore for 2000-01. A profit of Rs 108.3 crore on a turnover of Rs 12.67 crore seems to be backed by huge amounts of secured loans the company was able to receive throughout the 1990s.
Back to News Review index page  

Brussels’ ‘gift’ to Pak textile sector: India to reply to WTO today
New Delhi: New Delhi will file its replies to a World Trade Organisation (WTO) panel on Thursday in the dispute regarding Brussel’s ‘unilateral’ decision to extend a package to the Pakistani textile sector, denying it to the Indian textile industry under the European Union’s Generalised System of Preferences (GSP) scheme. The replies are in response to queries raised by the panel after its oral hearing of both parties in Geneva on May 14 and 15, textiles ministry officials say. They refer to the recent talks textiles secretary SB Mohapatra had with director-general of the European Commission in Brussels on the three-year GSP scheme from January 1, 2002 which extended special tariff arrangement to Pakistan to combat drug production and trafficking. Mohapatra told the meeting that as per New Delhi’s calculation, the Pakistani textile sector had become ineligible for the duty-free access benefit as exports had crossed the threshold limit fixed by EU under the scheme. Hence it must be ended well before the quotas under the WTO Agreement on textiles & Clothing (ATC) were phased out by December 31, 2004, he stated. Brussels had promised a fresh look at his request, officials pointed out.
Back to News Review index page