KESCo notice may hit DIL revival plan
WILL KESCO?S notice to the Duncan Industries Limited (DIL) prove to be the last nail in the revival plan of the fertilizer plant? KESCo managing director Sudhir Garg has sent a notice to the DIL management to submit pending electricity bill of Rs 3.85 crore for the current month by March 29 or else the power supply to the plant would be snapped by March 31.india Updated: Mar 29, 2006 00:38 IST
WILL KESCO’S notice to the Duncan Industries Limited (DIL) prove to be the last nail in the revival plan of the fertilizer plant?
KESCo managing director Sudhir Garg has sent a notice to the DIL management to submit pending electricity bill of Rs 3.85 crore for the current month by March 29 or else the power supply to the plant would be snapped by March 31.
It seems that there is no end to the problems of DIL. The recent one is non-payment of power dues for March. As per the agreement reached between KESCo and DIL, the latter had to pay a minimum of Rs 3.85 crore per month as power dues. This amount has to be paid irrespective of the fact that whether the plant is operative.
Unable to pay the power dues, the DIL management requested the KESCo MD to extend the last date for submission of the electricity bill by May 10, which was out-rightly rejected.
The KESCo MD instead shot off a notice to the DIL management to clear the bill by March 29 or else power supply to the plant would be snapped.
Such a tough stand taken by Garg over payment of dues is being perceived as a warning signal to the DIL management. It is being perceived that the important decision cannot be taken by the MD alone. He was directed by the State Government and the UPPCL not to provide any concessions further to the DIL management.
It was the same State Government that went out of the way to extend favours to the DIL management to ensure its re-opening. The State Government had also waived off dues running into crores and the fertilizer unit resumed its production on August 30, 2005 after a closure of over three years.
Even, Chief Minister Mulayam Singh Yadav was himself present on the occasion. But, barely after two-and-half months, the production at the DIL was halted once again on October 18, 2005 due to severe financial crisis and till date it could not be restarted.
Sources said annoyed over the DIL management’s failure to run the plant successfully, the State Government had decided not to extend any favours to it.
“The MoU signed between the State Government and the DIL management, which facilitated waving off dues worth hundreds of crores of the DIL, is also likely to run into rough weather,” it said.
No senior official of the DIL was willing to comment on the issue when contacted.
First Published: Mar 29, 2006 00:38 IST