The Hindu Business Line : State Govt shuts down Karnataka Agro Corn

Shutters down
The enactment of Karnataka Transparency Act led to the closure of the company as private cos started biiding to supply energy food
Of the 285 employees, some 121 have already been given voluntary retirement

Firoz Rozindar

Chitradurga, Nov. 4 The Karnataka Government has ordered the closure of the nearly four-decade-old Karnataka Agro Corn Products Ltd Company, which supplies energy food to Anganwadi centres in the State.

The company was started in 1973 with an objective of providing energy food to Anganwadi centres of the State through Women and Child Welfare Department. It was a profit-making company with units in Chitradurga, Raichur, Mysore, Belgaum and Doddaballapur.

The company was supplying energy food not only to the State Government but also selling it in the markets of Karnataka and the neighbouring States.

The company Chairman, Mr Eshwarchand Hosamani, said that the Government could have used the factories to supply mid-day meal to schools.

“We are ready to offer nutritious food once in a week at the Government rate if it agrees to retain the company. I have been asking the Primary and Education Minister to consider the demand. But so far, we have not received any concrete assurance. If the Government fails to take note of it, the nearly 40-year old company will become defunct, besides number of people losing jobs,” Mr Hosamani feared.

The enactment of Karnataka Transparency Act contributed to the closure of the company.

“When the Act came into force, private players began bidding to supply the energy food. Neither the officials nor the Ministers concerned took a note of it, resulting into the gradual loss in the revenue of the company,” said former MLA and former chairman of company, Mr C.R. Mohammad Saifuddin.

The total production in the five units, which was around 30,000 tonnes annually, has now come down to zero. Of the 285 employees, some 121 have already been given voluntary retirement, company manager, Mr Ajjappa said.

He felt that to save the company the Government could have at least exempted the company from the Act.

“After one such company obtained the tender in 2006, the Government was forced to incur maintenance expense without any production taking place in the company. This led to frustration among the employees, who started demanding the revival of the company,” said Mr Suresh, an employee who has applied for voluntary retirement.

More Stories on : Agricultural Institutions | PSU | Karnataka

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