By IANS,
New Delhi : The union cabinet Thursday approved the merger of Bharat Refectories Limited (BRL) in Jharkhand with the public sector Steel Authority of India Limited (SAIL).
After the cabinet meeting, Information and Broadcasting Minister Priyaranjan Dasmunsi said the merger would be deemed effective April 1, 2007.
“Every whole-time officer, including the whole-time director, or other employees of the BRL will become an officer or employee, as the case may be, of SAIL,” Dasmunsi told the reporters.
The government would allow the BRL to “redeem 7 percent non-cumulative preference shares worth Rs.12.05 crore (Rs.120.5 million) due for redemption on April 1, 2005 by fresh issue of (fully paid up) shares of equivalent amount as per provisions of Section 80 of the Companies Act, 1956.”
“The merger will set off the additional loss of Rs.30 crore (Rs.300 million) on restructuring of current assets based on assessment by the SAIL, also against the paid up equity share capital of Rs.227.19 crore (Rs.2.27 billion),” Dasmunsi said.
The minister said that the cabinet approved the merger under Section 396 of the Companies Act, 1956.