KSIIDC sees Rs 30 cr operating profit

The state-owned Karnataka State Industrial Investment and Development Corporation (KSIIDC), has recorded an operating profit of Rs 30 crore for the financial year ending March 31, 2006, after a gap of four years.

"The turnaround was mainly due to consolidation of the existing operations which involved putting fresh sanctions for financial assistance on hold, deploying major manpower for recovery from advances made, one time settlement of dues from sticky accounts and sale of assets taken over," KSIIDC managing director I M Vittal Murthy, said in a release on Thursday.

He pointed out that the KSIIDC has reached a negotiated settlement of dues with IDBI and SIDBI, the major creditors, which brought down the interest rate on these dues from 12.5 per cent to 6 per cent per annum, resulting in substantial overall reduction in the cost of borrowing.

"The KSIIDC has repaid and swapped high cost loans / bonds to the extent of Rs 270 crore during the financial year under review," he added.

KSIIDC has promoted a special purpose vehicle for facilitating implementation of six agro food parks at Bagalkot, Hiriyur, Jewargi, Maddur, Malur and Belgaum. It is also implementing an IT/BT park at Rajajinagar.