Debt-ridden Nafed plans to mortgage Delhi properties

May 25 2014, 20:57 IST
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Move to fetch Rs 265 cr, helping it partially retire Rs 1,800-cr debt. Reuters Move to fetch Rs 265 cr, helping it partially retire Rs 1,800-cr debt. Reuters
SummaryMove to fetch Rs 265 cr, helping it partially retire Rs 1,800-cr debt

commercial for the property. ďAfter Central Bank of India completes its valuation, the board of directors of Nafed would give formal approval for mortgaging these properties,Ē a source said.

DRTís net hearing of the case is slated for August 24. In 2012-13, despite making a gross profit of more than R64 crore, Nafed incurred a net loss of R149 crore due to huge interest liability. The situation was similar in the previous few years as well.

Nafed specialises in procurement of copra, oilseeds, cotton and pulses. It undertakes market intervention activities when the prices of these agricultural commodities fall below the minimum support prices. Nafedís staff strength, meanwhile, has reduced to around 360 following a VRS, resulting in savings of R7 crore in the annual wage bill.

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