New Delhi: The Cabinet Committee on Economic Affairs chaired by the Prime Minister Narendra Modi has approved the proposal for closure of the Biecco Lawrie Limited (BLL) including giving Voluntary Retirement Scheme (VRS)/ Voluntary Separation Scheme (VSS) to the employees of the Company.
The idling assets of Biecco Lawrie Limited will be subsequently put into productive use after meeting all the liabilities in accordance with the extant guidelines of the Government.
Ministry of Petroleum and Natural Gas has taken various steps for the revival of the Company from time to time. However, the Company could not be revived and further, there appeared no possibility of revival of the Company considering the competitive business environment as well as huge capital requirement. The continued loss has made further operations of the company not only unviable but also resulted in substantial distress to officials and staff due to an uncertain future.
BLL is a Schedule ‘C’ Central Public Sector Enterprise (CPSE) with 67.33% and 32.33% equity share held by Oil Industry Development Board (OIDB) and Government of India respectively. The remaining 0.44% shares are held by others.
The Company, having its registered Office and Headquarters at Kolkata, West Bengal operates in four business segments: Switchgear Manufacturing, Electrical Repair, Projects Division and Lube blending & filling facility.
The Company has consistently been under financial stress and has had performance-related issues. It has been making losses for the last several years. BLL’s accumulated losses had become more than the equity and the net worth had become negative. The Net worth of the Company stood (-) 78.88 crore at the end of the FY 2017-18 and accumulated loss as on 31.03.2018 was (-) 153.95 crore.