Govt wants to sell off TCIL in current fiscal
The government is pushing hard for outright sale of Tyre Corporation of India Ltd (TCIL) in the current fiscal and has shortlisted three eligible companies for buying out the ailing PSU.
"DoD wants to sell 100 per cent equity in TCIL in the current fiscal. The Department is working hard to complete the stake sale process," officials said.
The Department of Disinvestment (DoD), which had appointed SBI Capital Markets as an advisor to manage the company's sale process, is actively working on 100 per cent stake sale in the company.
The sources, however said, since the process takes time, "outright sale takes time so it might spillover to next fiscal".
Three Kolkata-based business groups -- Sanjay Budhia's Patton, Pawan Kumar Ruia-led Ruia Group and Titagarh Group headed by J P Chowdhary -- have been shortlisted for the final bidding for TCIL, officials said.
SBI Cap has convened a meeting on January 25 and now the final bidding would be in mid-February, they added.
West Bengal-based TCIL, wholly-owned by the Union government, makes automotive tyres and was incorporated in 1984. Its paid-up capital was Rs 29.63 crore as on March 31, 2011. TCIL was declared a sick company in 1992 and was then
referred to the Board for Industrial and Financial Reconstruction (BIFR).
The proposal for revival of the company was considered by the Cabinet in November, 2008 and it approved the financial restructuring of TCIL through cleaning of the balance sheet and subsequent disinvestment of the company.
Since 2002, the company has not been manufacturing its own brand of
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