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JBF Industries
The Karnataka government is in talks with the Centre to provide jobs at Gas Authority of India Limited to 34 employees who are left in the lurch due to a financial crisis in JBF Industries Ltd, state Large and Medium Industries minister MB Patil said on Tuesday in the legislative council. He was replying to a question by Congress member Manjunath Bhandari. The minister said that talks will be held again with top officials of GAIL. The minister's reference was to 34 people who were evicted after they gave their lands to JBF Industries Ltd in Mangalore Special Economic Zone (SEZ). According to the government rules, the company should have employed 115 such people who gave up their land for the project. Later, the company employed only 81 of them in 2012. However, the company ran into a financial crisis in 2017 and was handed over to Gas Authority of India Ltd (GAIL) as per the process held at NCLT (National Company Law Tribunal). Though GAIL paid them wages till March 2023, problem
India's largest gas firm GAIL has infused Rs 2,100 crore in insolvent private-sector chemical company JBF Petrochemicals Ltd that it had acquired in bankruptcy proceedings. The firm had in March won bankruptcy court approval for taking over JBF. In a stock exchange filing, GAIL (India) Ltd said it has "infused Rs 2,101 crore (equity - Rs 625 crore and debt - Rs 1,476 crore)" in the committed bankruptcy resolution plan. "Accordingly, JBF has become a wholly-owned subsidiary of GAIL with effect from June 1, 2023," it said. GAIL had outbid a consortium of Indian Oil Corporation (IOC) and Oil and Natural Gas Corporation (ONGC) in the insolvency process run by IDBI Bank to recover Rs 5,628 crore of dues to financial and operational creditors. JBF Petrochemicals was incorporated in 2008 to set up a 1.25 million tonne per annum capacity purified terephthalic acid plant at Mangalore Special Economic Zone. IDBI and other banks had lent JBF money to build the PTA plant for USD 603.81 milli