In a major setback to the government’s programme to restructure ailing PSUs, the finance ministry has rejected a proposal to give financial assistance to revive Madras Fertilizer (MFL). MFL is one of several PSUs seeking funds from the government.
In the case of MFL, the finance ministry’s stand could mean virtual closure of the company that has been reeling under severe losses for the past few years. The restructuring package for the company was finalised by department of fertiliser (DoF) and sent to the Cabinet Committee on Economic Affairs (CCEA) for approval.
MFL has got accumulated losses of Rs 513.7 crore which may go up to Rs 665.57 crore by the end of the fiscal 2007-08. The paid-up capital of the company is Rs 161 crore.
Read more in The Economic Times article.
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