Iisco MD Garcha suspended

CALCUTTA, JAN 29: The Union steel ministry has suspended Indian Iron amp; Steel Co Iisco managing director GS Garcha only a few days be...

CALCUTTA, JAN 29: The Union steel ministry has suspended Indian Iron amp; Steel Co Iisco managing director GS Garcha only a few days before he was to complete his five-year term as director of its parent company, Steel Authority of India Ltd SAIL. Garcha 59 was due to complete his term on February 2, 2000. Meanwhile, SAIL has asked Iisco8217;s executive director for works, TS Hora, to look after the function of the managing director temporarily.

According to steel ministry sources, the ministry has taken this action on the advice of the Central Vigilance Commission CVC which had been investigating a number of complaints against Garcha.

According to industry sources, one of the major charges against him was that he had amassed property disproportionate to his known sources of income. There are corruption charges against him also, although none of them are in connection with Iisco. However, it could not be confirmed whether these were the charges that the CVC was investigating.

After being in charge ofIisco8217;s Chasnala Colliery till 1989, Garcha was shifted to SAIL. In 1995, he joined the SAIL board as director of its raw materials division. In 1998, he was given additional charge of Iisco as its managing director and was finally made the full-time managing director by the end of the same year.

According to Iisco insiders, Garcha had often been in the thick of controversy. He had major differences of opinion regarding the future of Iisco. He had often said that once its balance sheet was cleaned up and substantial benefits assured, Iisco could be modernised on its own without a joint venture partner.

However, his views were dramatically different from others in authority who often felt that an investment by a joint venture partner was essential for the revival of Iisco. During the past two years, Garcha floated several new ideas for the revival of Iisco but could never avoid controversy over his plans and ideas.

Some of the steps he took at Iisco, such as freezing of salaries, were not welcomed byworkers and officers. However, it must go to Garcha8217;s credit that in spite of the gloom in Iisco about its future, he was able to complete the construction of the twin hearth furnace. quot;While it would be wrong to think that Garcha was anywhere near popular in Iisco, his opponents often admit that he could get many things done which others would have failed. With his exit from Iisco, fate of the ailing company has again become uncertain,quot; an Iisco insider said.