ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Expanding Profitably

Expanding Profitably Hansavivek TATA ENGINEERING AND LOCO- MOTIVE COMPANY'S major expansion is proceeding on schedule. The new foundry at Poona is expected to be ready early next year. By then the prototypes of the various aggregates and the new vehicles to be produced at Poona will also be ready for trials. The company has approached financial institutions led by IDBI for a rupee loan of Rs 17 crores to finance the expansion programmes at Poona and Jamshedpur, The foreign exchange requirements for the expansion (excluding the foundry) is to be met out of a project loan to be granted by KFW to the Government of India. Last year, ICICI agreed to grant a foreign currency loan equivalent to Rs 108 lakhs to the company for the foundry project, in addition to the loans of Rs 573 lakhs already given by it. The company's cash credit limits were reduced The Week's Companies from Rs 38.5 crores to Rs 20 crores as a result of the credit squeeze by banks last December. TELCO has requested bankers to restore the original limits in view of the increasing financial requirements due to the expansion programme and increases in costs. TELCO was allowed to increase vehicle prices by 7.5 per cent from mid-May last, and Government stipulated that future increases, more than once a year or exceeding 7.5 per cent, would require its prior approval. S Moolgao- kar, chairman, observes that, since there is no restriction on the prices of goods which the company has to purchase from outside sources

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