The Company was referred to BIFR in the year 1992 and since then it is still under BIFR. The Govt. of India had decided to close down Barauni and Durgapur Units and Haldia Division along with other offices and Establishments of the Company in the year 2002.In the hearing held on 08.03.2010, the BIFR requested for expediting the revival process.
An Empowered Committee of Secretaries was constituted with the mandate to evaluate all financial options for revival of the closed units of FCIL/HFCL and to make suitable recommendations for consideration of the Government. The Empowered Committee of Secretaries had submitted its recommendations after a series of meetings. Based on the recommendations of ECOS & DOF, a draft CCEA note was prepared and circulated for inter-ministerial consultations.
During the year under report, the Company made an operating profit of35 lakh, but incurred a loss of382.47 crore after considering prior period adjustments and tax as compared to previous year’s net profit of4841.16 crore. The Unit-wise break up of net profit and loss is given below in the Table:
The process of revival of all the three Units is progressing well. The Govt. of India has also agreed ‘in principle’ for waiver of all the loans and interest due to GOI. As per the revival scheme, the Company is likely to get up-front fee and revenue sharing. Therefore, the Company is on the path of revival and the net-worth is likely to become positive on implementation of revival package and waiver of loans and interests due to GOI.
Since the closure of the Corporation, employees were being released under VSS. As on 31.03.2010, 4665 number of employees have been released against a payment of283.96 crores towards ex-gratia and terminal benefits.