Cabinet approves Bharat Refractories merger with SAIL

The centre has approved the merger of Bharat Refractories Limited with steel Authority of India, waived BRL's non-plan loan of Rs145 crore to facilitate the move which will create a greater synergy between the companies.

Information and broadcasting minister P R Dasmunshi told reporters after a meeting of the union cabinet under the chairmanship of Prime Minister Dr Manmohan Singh in New Delhi yesterday, "The union cabinet today gave its approval for merger of BRL with Steel Authority of India Limited (SAIL) under section 396 of the Companies Act" 

The set of proposals approved by the cabinet for the merger include waiving non-plan loan of Rs 145 crore sanctioned in 2002-03 out of total outstanding loan of Rs161.49 crore as well as waiving interest of Rs40.91 cror accrued on government loans till 31 March last year.

The cabinet also approced the conversion of balace amount of plan loan of Rs 16.50 crore as equity besides setting off accumulated losses of Rs22.31 crore outstanding in the books due to merger of India Firebricks and Insulation Limited (IFICO) against the paid-up equity share capital of Rs227.19 crore (including loan converted into equity), he said.

It also approved setting off the remaining accumulated loss of the company as on 31st March, 2006 amounting to Rs 173.73 crores also against the paid-up equity share capital of Rs 227.19 crore.

Dasmunshi also said that the cabinet had also decided to waive non-plan loan of Rs30.46 crore along with the interest provided to BRL in December 2006.