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Journalism of Courage
Unwilling to write off the Rs 3,000 crore Malvika Steel in Jagdeeshpur, Uttar Pradesh, the term-lending institution Industrial Finance Corporation of India (IFCI) has approached steel giants like Tisco and SAIL for management takeover and revival of it.
Fighting a legal battle in a debt recovery tribunal here for recovering about Rs 1,800 crore given to Malvika by the financial institutions, IFCI chairman V. P. Singh said that extending credit to it was a bad experience and criticised the promoters Vinay Rai and associates for not cooperating for revival of the project.
In June 2001, the then IFCI chief P. Narasimham had dubbed the takeover of Malvika as the smoothest one after Rais’ pledged their entire holding of about 60 per cent and Rai had resigned in October 2001. IFCI had then moved the Allahabad High Court for transfer of shares in its name.
Singh said he had not got any favourable response so far in his search for a management partner to revive the project and added he would also look for interested parties abroad. ‘‘I have asked if they (Tisco and SAIL) can run Malvika but the response had not been very positive,’’ he said.
Asked about non-payment of salaries to over 700 workers at the Malvika, located in Amethi parliamentary constituency, Singh said this could be answered by the promoter Rai.
On the issue of number of thefts and lack of security arrangement, IFCI chief said he had written to authorities in UP to provide security, apart from sending a team of security personnel.
