State-owned Coal India Ltd is mobilising a Rs 1,600 crore funding for two of its ailing firms — BCCL and EC — to take them out of the Board for Industrial & Financial Reconstruction?s purview in the next two years.
Both the subsidiaries of the coal giant were referred to BIFR about a decade back and are struggling to come out of it.
?CIL is making efforts to take them out of BIFR and is hopeful of securing a medium-term loan of about Rs 1,600-crore for the companies, including Rs 1,000-crore for Bharat Coking Coal Ltd (BCCL),? Chairman Partha S Bhattacharyya told PTI.
Both the coal firms were loss-making and eventually were referred to the BIFR. But continued efforts by CIL has turned Eastern Coalfields Ltd (ECL) and BCCL into profit-making entities recently, Bhattacharyya said.
?We are hopeful that both BCCL and ECL would come out of BIFR?s purview in two years and are making efforts in that direction. Apart from securing funding, write-offs are to be done. Besides, there are many legal and other issues to be resolved,? he said.
The pre-budget economic survey in July had mooted for listing of the two sick subsidiaries of the coal major by divesting 49 per cent government stake in the companies and transferring management control to a private firm.