Nafed goes for two VCs

Board to forward revival package along with dissent notes

Sunil Kumar Singh, chairman, Bihar State Cooperative Marketing Union and chairman of AJMS bank Dileep Sanghani were elected as vice-chairmen of the National Agricultural Cooperative Marketing Federation of India (Nafed) on Tuesday, according to its board members. 

Sanghani is a senior BJP hand and had served as the agriculture minister in Gujarat government led by Narendra Modi, while Singh is seen close to Lalu Prasad's Rashtriya Janata Dal.

"The revival package would be forwarded by the board along with the dissent notes," Ashok Thakur, director, Nafed said.    

Thakur, who is the government nominee on the Nafed board, added that his dissent note to the Rs 478 crore package was supported by few other members on the board. Questions have also been raised about the Rs 200 crore valuation accorded to a property in Mumbai, Thakur said.

According to the proposed package, Nafed will pledge 17 freehold properties in cities like Delhi, Kolkata, Mumbai and Patna with the government for an interest-free loan of Rs 478 crore. This loan will be used to pay off dues to various public sector banks as a one-time settlement.

The proposal will now go to the Union ministry of agriculture, which will then prepare a note for Cabinet approval.

The revival package is crucial for the government agency to get rid of the wilful defaulter tag with some banks. Its dues are Rs 1,700 crore. Nafed's revenues have seen a steady decline over the last few years as mounting interest costs have crippled it.