Kribhco Set To Get Mandate To Revive Mangalore Chemicals

Krishak Bharati Cooperative Ltd (Kribhco) is set to get the mandate of the Board for Indus-trial and Financial reconstruction (BIFR) to revive Mangalore Che-micals and Fertilisers Ltd (MCF), currently managed by United Breweries.

No other bidder has made any serious attempt like Kribhco has done, though a couple of foreign companies have made preliminary enquiries, said an MCF source.

Confirming an all-out bid by Kribhco to rehabilitate the lone fertiliser unit in Karnataka, state agriculture minister C Byrwe Gowda said, I think it is only a formality before MCF comes under the care of Kribhco.

MCF which has, despite excellent production record under UB management, piled up massive losses to the tune of Rs 300 crore. Banks and financial institutions showed no interest in UB groups rehabilitation package.

 

Moreover, labour problems with HMS- and Intuc-affiliated unions made the going difficult for UB group. When UB entered the company in 1990, the company had Rs 90 crore plus losses.

IDBI, the operating agency named by BIFR to take steps to decide the future of the company, would put the unit on auction if nothing tangible happens by March 15. According to sources, Kribhco had already completed the groundwork with a team of 20 officials completing a feasibility report for the revival of the unit.

Kribhco president and JD MLA K M Srinivasa Gowda recently visited Mangalore to have discussion with trade union leaders and officers before finalising the application with a financial commitment statement to BIFR.

Gowda said, We are ready to invest Rs 250 crore to put the unit back on the track and if need be will hand over a draft for Rs 5 crore once BIFR hands over the company to us. Kribhco entered the scene only after Prime Minister Deve Gowda gave green signal. Kribhco has a surplus of over Rs 1,500 crore and it also has the expertise to run fertiliser units. Since MCF has a captive power unit of 39 MW, reviving the unit with fiscal and managerial input from Kribhco is easy, said Srinivasa Gowda.

Though Norway-based Agrotech had evinced interest in taking over MCF, nothing tangible has happened and only Kribhco proposal would go before BIFR, said UB sources.

Labour union leaders and officers have expressed their willingness to cooperate with Kribhco in reviving MCF. Intuc leader N M Adyantaya, who had bid for MCF on behalf of workers, has also assured support to the cooperative giants effort.