At a meeting held earlier this month, the board had asked IDBI, the operating agency for the DRS, to incorporate some amendments in the original scheme proposed and submit the final DRS by March 15 (Thursday).

IDBI had identified three main unresolved issues at a joint meeting held on March 1, 2001: 1) De-linking of Binny Lorze from the Rehabilitation Scheme; 2) Settlement of dues to the State Bank of India (SBI); and 3) Payment of interest to workmen.

At its hearing, BIFR directed that Binny Lorze, an export oriented unit joint venture, promoted by Binny Ltd, could also be linked to the DRS. Binny Lorze had a liability of Rs 32 crore and BIFR had earlier objected to it being clubbed with Binny's DRS and wanted it to be delinked from the scheme.

BIFR has also directed the SBI to accept the managements' offer to pay Rs 25 crore and not to claim any preferential treatment over other banks.

As regards payment of interest to workmen, it was decided that the principal amount due to workmen amounting to Rs 41.33 crore would be paid within 90 days of sanctioning of the DRS and interest on the principal amount would be paid to them in four installments over four years. First installment of interest is payable after one year from the date of payment of the principal amount.BIFR will give 60 days to all parties to the DRS to file objections if any.

A final hearing is expected to be held sometime in June 2001 and the DRS is likely to be sanctioned. It may be recalled that IDBI as the operating agency for the DRS had proposed to split troubled Binny Ltd into two entities; Binny Ltd (BL) and Binny Karnataka Ltd (BKL).

Revival of Binny Ltd, which would retain control of B&C Mills at Perambur in Chennai, is planned by pumping in Rs 298.9 crore over a seven-year period starting this year.

By end December 2000, Binny's total liabilities to a consortium of banks and LCs is estimated at around Rs 46 crore. As regards workers, the company had agreed to pay Rs 67.75 crore towards workers' dues including VRS compensation, arrears of salaries and wages etc. The company has already made payment of Rs 26.42 crore to workers. The balance liabilities of employees amounting to Rs 41.33 crore is to be discharged along with interest calculated at 11.25 per cent per annum from September 15, 1998 till date of payment.