KIOCL told to shed Rs 30 cr equity

He said at an investment of Rs 153 crore, KIOCL would set up a coke oven plant in Karvar to support its Rs 328 crore iron and steel plant in Kudremukh. A pellet plant also would come up in Mangalore at an investment of Rs 68 crore, Murari said. These projects would become operational by June this year. Currently, KIOCL was contemplating diversification into the steel sector, he said. The proposed steel project in Mangalore would take off only after closely considering its viability in terms of market conditions and power availability, he said.

During the fiscal, KIOCL has plans to widen and intensify its exports by foraying into European markets. The company also has decided to reenter Thailand and Turkey, Murari added.

Commenting on clearing its debt incurred from procuring power from Karnataka Electricity Board, Murari said both KIOCL and KEB had amicably arrived at a decision to clear the debt of Rs 85 crore in four tranches. Of this, Rs 40 crore had already been paid, he said.

KIOCL has located a couple of new mining areas in the state including Nellibeed. The company’s mining license is due for expiry in July this year and it was expected to be renewed, Murari added.

The company has recently built a 30 megawatt power plant in Mangalore and a 60 mw plant was scheduled for Kudremukh, he said.

According to Murari, KIOCL had witnessed better performance in the period from 1993 to 1997. The balance sheet was looking less healthy after its production and marketing suffered a set back with Iran cancelling 67 per cent of its order as the oil prices in the country hit the pits.

During 1997-98, KIOCL posted a net profit of Rs 81.08 crore as against a gross turnover of Rs 612 crore. "We don’t expect a better result for the last fiscal as we have not performed physically well. During the period, production was down by 17 per cent as against the previous year. The company lost 52 working days due to power and other interruptions," Murari said.