The company has referred the case to the Board for Industrial and Financial Reconstruction (BIFR) under Section 51 of the Sick Industrial Companies Act (SICA). SSLPG is the biggest player in the LPG market in India and caters to over 2 lakh customers.
The company had been making losses since it resumed operation with the result that its net worth has been eroded. According to a company official, the total equity of the company stands at a little over Rs 51 crore, while the company has made an accumulated loss of Rs 57 crore up to March 31, 2002.
SSLPG had embarked on a financial restructuring exercise, but it did not divulge details of the steps adopted in this regard.
The official added that the government was continuing subsidy to public sector LPG players even as private players had to import LPG at a much higher cost. He added that while the import price had gone up from $105 per tonne to $350 per tonne in the last seven years, the price at which LPG is supplied to customers has not seen a proportional increase.
SSLPG is an integrated LPG company with dedicated port facilities, bulk storage terminals, network of bottling plants and distribution outlets and manufacture of LPG cylinders.