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Panel discusses MCF revival scheme

Our Bureau

BANGALORE, Jan. 18

THE reliefs sought for the revival of Mangalore Chemicals & Fertilisers, a UB group company, were taken up at a high-powered meeting of the Industries Department here on Thursday.

The committee's recommendations will be referred to the State Cabinet meeting later this week.

A revival package is now under consideration for the Rs. 427-crore MCF, which the BIFR recommended for a winding-up in October 1999.

The company has, among other things, sought one-time settlement to banks, rephased and longer period of repayment, waiver or deferment of sales tax dues, besides exemption of turnover tax, entry tax and ST on electricity generation.

According to sources, the revival hinged on ``some sacrifices from the promoters, the bankers and the Government.'' At earlier meetings with the FIs and equity holders, the State Industry Minister, Mr. R.V. Deshpande, had stressed home these points, they said.

During third quarter of this year, MCF, however, recorded a net profit of Rs. 5.2 crores. Its urea and DAP productions also reached record levels and the turnover increased to Rs. 202.63 crores. Its losses had touched Rs. 300 crores in 1998.

The UB group, which acquired it seven years ago, has over 16 per cent equity share, the State around 11 per cent and the FIs over 40 per cent. The rest is with the public.