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| TACF to restart operations soon |
| T E Narasimhan / Chennai Aug 20, 2010, 00:07 IST |
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Tuticorin Alkali Chemicals and Fertilisers Limited (TACF) will restart its plant in the next few weeks as SPIC's ammonia plant, which supplies carbon dioxide as raw material to the former, goes on stream shortly.
A C Muthiah, chairman, TACF, told the shareholders at the company's annual general meeting that company's plants will restart in the next few weeks. The refurbishment work on the plant and machinery at Tuticorin site reached the final stages of completion, he said.
The company is promoted and managed by Chidambaram M A group. TACF manages its production facilities in Tiruchirappalli, Tuticorin and Chembarambakkam in Tamil Nadu.
“There was no source of funds from institutions/banks for maintenance jobs and hence the entire turnaround of the plant was being down from other resources,” he added.
The draft rehabilitation scheme (DRS) for revival of the company would be finalised in consultation with the operating agency, the IDBI Bank, and that the fully tied-up DRS would be presented to the Board for Industrial and Financial Reconstruction (BIFR) before its next hearing on October 28.
The AC Muthaiah-led Spic group fell in trouble due to financial crunch. SPIC owes around ' 2,845 crore to its creditors, a consortium of banks led by Indian Bank. However, lenders such as IDBI Bank, ICICI and Bank of India have sold their Spic loans to Arcil.
The company also failed to pay its dues to Indian Oil Corporation, which supplied naptha to SPIC’s fertiliser plant at Tuticorin, following which the unit was closed in 2007. TACF has also stopped production as SPIC could not supply CO2, ammonia.
The company is engaged in the production and sale of chemicals and fertilizer products such as soda ash, alkali chemicals, ammonium chloride, pesticides, formulations, sodium bicarbonate, and bi pesticides.
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