Bengal puts Durgapur Projects unit on revival track

KOLKATA: In a bid to sell the coke oven division of Durgapur Projects (DPL), the West Bengal government has decided to write off the entire debt of the division. The state government may also introduce an early retirement scheme (ERS) for the 1491-odd employees of DPL���s coke oven division to make it an attractive takeover target.

The state government had in the past approached SAIL to take over DPL���s coke oven unit but it did not work out. Now, the state plans to revive discussions with SAIL, failing which it will invite bids from private parties.

���We have decided to meet SAIL chairman soon and make the offer of writing off debt relating to DPL���s coke oven unit. Now that the state government has decided to bifurcate WBSEB and write off some Rs 9,500 crore debt for both WBSEB and WBPDCL, it is ready to also write off the debt linked to DPL���s coke oven division. The state has also decided to allow introduction of an early retirement scheme (ERS) so that it makes business sense for SAIL to take it over,��� Sunil Mitra, state power secretary, told ET.

On the quantum of the debt that will be written off before selling DPL���s coke oven unit, Mr Mitra said: ���The initial decision is to spin off the coke oven unit into a DPL subsidiary. Only then, can the debt component be ascertained.���

���However, if talks do not progress, we will sell the unit to private parties. With rising global demand for steel, a large number of private parties would be interested in the plant. However, since we were in talks with SAIL, the government would like to make the first offer to the company,��� he added. On the number of employees which needs to be reduced, Mr Mitra said: ���The company that takes over DPL���s coke oven unit will have to determine the degree of excess manpower. The plant, which was originally built with five batteries, has only two running. This has resulted in excess manpower and it will up to the acquirer to arrive at the number.���