The picture on Hindustan Photo Films will get clearer as the government is set to take a decision to restructure the sick public sector unit. The committee of secretaries (CoS) is likely to meet later this month to decide on the fate of the company. One of the measures being considered is to sell the entire government stake in the firm.
The committee is considering three options: Selling 100% stake of the government, infusing fresh capital or finding a suitable joint venture partner, said sources.
The ministry of heavy industries and public enterprises has sought a revival package of R1,266 crore from the finance ministry, which includes R302 crore in cash assistance and R994 crore as non-cash assistance.
Out of this R302 crore cash support, R200 crore will be in the form of equity for one-time settlement of creditors, R20 crore for salary support during the first year of revival, R9 crore for repairs, R&D trials, and sales and promotion, and R43 crore for diversification into IV fluid and colour photo paper, and R30 crore as working capital. The non-cash assistance includes waiver of central government loan of R343 crore and interest of R650 crore thereon.
A revised package, taking into account the suggestions made by other ministries, is now being considered for the PSU. ?The attempt is to consider ways that brings back the PSE into a working condition and infuse the latest technology. At present the unit has only black and white technology which needs to be upgraded to colour to make it financially viable,? an official said.
The heavy industry ministry had last year also forwarded a rehabilitation proposal to the CoS seeking a waiver of all interest owed to banks, financial institutions and unsecured creditors.
The net loss of the company, which was declared sick in 1996, rose from R496 crore in 2004-05 to R1,009 crore in 2009-10.
