New Delhi: The government is pushing hard for outright sale of Tyre Corporation of India Ltd (TCIL) in the current fiscal and has shortlisted three eligible companies for buying out the ailing PSU.
"DoD wants to sell 100 per cent equity in TCIL in the current fiscal. The Department is working hard to complete the stake sale process," officials told PTI.
The Department of Disinvestment (DoD), which had appointed SBI Capital Markets as an advisor to manage the company's sale process, is actively working on 100 per cent stake sale in the company.
The sources, however said, since the process takes time, "outright sale takes time so it might spillover to next fiscal".
Three Kolkata-based business groups -- Sanjay Budhia's Patton, Pawan Kumar Ruia-led Ruia Group and Titagarh Group headed by J P Chowdhary -- have been shortlisted for the final bidding for TCIL, officials said.
SBI Cap has convened a meeting on January 25 and now the final bidding would be in mid-February, they added.
West Bengal-based TCIL, wholly-owned by the Union government, makes automotive tyres and was incorporated in 1984. Its paid-up capital was Rs 29.63 crore as on March 31, 2011. TCIL was declared a sick company in 1992 and was then referred to the Board for Industrial and Financial Reconstruction (BIFR).
The proposal for revival of the company was considered by the Cabinet in November, 2008 and it approved the financial restructuring of TCIL through cleaning of the balance sheet and subsequent disinvestment of the company.
Since 2002, the company has not been manufacturing its own brand of tyres. It has been doing 100 per cent job work for companies such as Ceat and Birla Tyres due to the shortage of working capital.
TCIL, a Central Public Sector Enterprise under the Ministry of Heavy Industries and Public Enterprises was incorporated in 1984 under the Companies Act, 1956. During 2011-12, the company registered a loss over Rs 20.72 crore.
The Department of Heavy Industry in July 2011 had prepared a proposal for a complete sell-out of TCIL as it has been reporting losses for the last several years.
The outright sale of TCIL would help the government in inching towards meeting the Rs 30,000 crore disinvestment target for the current fiscal. The government has already realised over Rs 6,900 crore by offloading minority stake in PSUs like Hindustan Copper and NMDC.
The Ruia Group has two verticals - tyre and rubber industry and heavy engineering and infrastructure and Patton India Ltd is a leading engineering export house.
Titagarh Wagons Ltd is primarily engaged in the business of manufacturing railway wagons & EMUs (Coaches).