No disinvestment of IDCOL Ferro Manganese and Kalinga Iron Works

Bhubaneswar,Jul 31 (UNI)The Orissa government today decided not to go for disinvestment of the state owned IDCOL Ferro Manganese Alloys Corporation Limited at Jajpur and the Kalinga Iron Works Limited at Barbil in Keonjhar district.

IDCOL Managing Director Ashok Meena told newspersons here that the government took the decision as the two companies were making profits and hopeful of paying dividend to the state government next year.

Earlier in 2004-05 the Cabinet Committee on disinvestment had suggested for disinvestment of all the IDCOL managed industrial units.

Following the recommendations many units like IDCOL cement, spinning mills at Baripada and Aska, Hirakud Iron Works, Hira Cable and Hira rolling mills were disinvested.

Mr Meena said the Ferro Manganese Ltd and the Kalinga Iron Works had accumulated a cumulative loss of Rs 200 crore two years back.

But during the last one year the company had already paid back Rs 105 crore and hoped to pay the rest by December next.

The IDCOL also targetted to pay back the government loan amounting to Rs 70 crore soon.

Mr Meena said IDCOL planned to make turnover of Rs 750 crore in these two units next year and a profit of Rs 175 crore.

Since the companies were making profit, the government decided not to go for disinvestment now, he said.

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