Gelli To Set Up Turnaround Fund To Take On Sick Cos

Hyderabad, Feb 25: | Updated: Feb 26 2004, 05:30am hrs
It is between the turnaround fund and politics that beleaguered banker Ramesh Gelli is now tracing upon.

I am seriously working on the project to develop a turnaround fund that aims at taking on the sick companies, which can be turned around on infusion of extra-finance, Mr Gelli told the select group of reporters here on Tuesday. Initially the fund would be to the order of Rs 100 crore, including his personal contribution besides commitments from domestic institutions. The senior banker also said that he did enough homework on the project and also approached some of the core persons who are expected to take up in the initiative. From the date initiating the work, it would require about six months to make the fund operational, he said.

Speaking on politics, Mr Gelli said that some of his well wishers have insisted he join politics, while others have asked him not to join. I have yet to make up my mind on it, he said. He opined that his joining politics would not affect the turnaround fund project, as it would be run by competent individuals on their specialised areas such as: IT, pharma, engineering etc. There are a number of information technology companies, which are unable to get third round of finance from the venture capitalists and they even cannot reach the banks. These companies could make turnaround provided they receive timely finance, he said.

Speaking on his association with Global Trust Bank, he said he is not intending to take any active role in the management of the bank and would maintain only a consultative role.