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Thread: Govt kicks off sale of Tyre Corp
04-21-2012, 10:06 AM #1
Govt kicks off sale of Tyre Corp
The government on Friday fast-tracked the sale of sick public sector undertaking Tyre Corporation of India (TCIL) saying it intends to appoint an asset valuer for the disinvestment in the company.
The Finance Ministry's department of disinvestment in an advertisement in the national dallies invited an asset valuer for the valuation of fixed assets of the company.
The department of disinvestment had earlier appointed State Bank of India's (SBI ) consultancy arm SBI Caps for the sale.
"TCIL, which has a unit in Kankinara, West Bengal, is being disinvested under the Tyre Corporation of India Limited (disinvestment of ownership) Act, 2007," Minister for Heavy Industries and Public Enterprises Praful Patel informed the Rajya Sabha in March.
TCIL did not manufacture tyres during December, 2011 and January, 2012 and had paid salaries to its employees till August, 2011.
According to finance ministry, after the appointment of all the consultants, including legal, it will float an expression of interest (EoI) inviting buyers. The ministry is expecting to sell the company in the current fiscal.
The company was referred to the Board for Industrial and Financial Reconstruction after it turned sick in 1992.
The company was set up in 1984 after nationalisation of two private companies namely - National Rubber Manufacturers and Inchek Tyres.