Lucknow, Nov. 12: The Uttar Pradesh government today decided to completely wind up the loss-making Uptron India Ltd.
The decision to close down the state government undertaking and offer a voluntary retirement scheme to all its employees was taken by the state Cabinet at a meeting chaired by chief minister Mayawati.
Uptron India Limited, set up in 1978, had accumulated losses by 1992-93 and the Board for Industrial and Financial Reconstruction (BIFR) declared it a sick unit in 1994. Subsequently, proposals had been made to revive the ailing company, but nothing concrete happened.
The company has been accumulated huge losses and its total liabilities are believed to be around Rs 554 crore. A note circulated by the government said that since there was no source of income, there was no hope left to clear the losses. The board of directors of the company had also recommended winding up of the company. The Cabinet today accepted the recommendations of the board and decided to send its decision to the BIFR. The company has a payroll of 786.
In another decision, the Cabinet today decided to keep the sugarcane rate for the current crushing season on a par with the rate announced in 2001-2002. Last year the rate for sugarcane had been fixed as Rs 90 per quintal. This is Rs 31 per quintal more than the rate offered by the Union ministry of agriculture which offers Rs 64.50 per quintal for sugarcane.
The UP government also approved a reduction in entertainment tax on all cinema halls from 100 per cent to 60 per cent.
In 2000, the government had levied two slabs of 100 per cent and 60 per cent on cinema halls. The lower rate of tax had been announced for those halls that agreed to pass on the benefit to cinegoers to attract more people to generate more revenue. Now the state government has announced that there would be one uniform tax rate of 60 per cent on all cinema halls in the state.
The Cabinet also decided to impose a 40 per cent levy on paddy in the current season in Varanasi, Mirzapur, Gorakhpur, Azamgarh, Faizabad and Allahabad divisions. However, in all other areas the levy would be 60 per cent.