(TIE)
With state-run oil marketing companies (OMCs) refusing to buy perpetually sick Biecco Lawrie Ltd, the Petroleum Ministry has decided to shut down the British-era company as it sees “no possibility” of its revival. This is in line with consultant KPMG’s report which ruled out revival or part revival as a feasible option, but said that “the option of sale should be explored first and subsequent to this evaluation, closure option may be looked at”.
Ahead of the proposed closure, the ministry is seeking the approval of the Cabinet Committee of Economic Affairs for a budgetary support of Rs 153.26 crore as interest-free loan that would be subsequently converted into equity. The money would be used to pay voluntary retirement package to its existing 275 employees, repay the Rs 24.56-crore loan it took from its majority shareholder Oil Industry Development Board (OIDB) and one-time settlement with lending banks.
