Mangalore: MCF closes shutters- Labour union protests


Pics: Meryick D’Silva

Daijiworld Media Network—Mangalore (CLP)

Mangalore, Oct 1: MCF Mangala Karmika Okkuta workers held a protest infront of the MCF, in Baikampady Industrial Area on October 1 against the closure of the company.

MCF is the only manufacturer of chemical fertilizers in the state of Karnataka and was founded in 1974, in Baikampady Industrial Area, Dakshina Kannada district. During that time, MCF was jointly owned by the central and state government. During 1990, under the ownership of the central and the state government, the company started facing sudden losses. When losses occurred, it was Vijay Mallya who came to the rescue of the company. The UB Group owned by Mallya purchased 22 percent of the share capital while the rest remained with the Government. The company has an annual turnover of Rs 3,700 crore.












Recently, the central government issued orders to MCF to stop production of urea from naptha and switch over to LPG by end of September, or face closure.

Speaking to the media, president, Surya Narayan, Mangala Karmika Okkuta, said, “ From the past one month we have done all to save the company. We have closed the company and all the reports in the media saying 60 percent or 40 percent less production, all are false information. We need some time to completly close the company, by today evening it will be completly shut down. We request the government to run the factory until the gas pipeline is connected, though the naphtha-based urea production be allowed. Today more than 2,000 workers are on the streets and its the responsibility of the government to find a solution for this problem."

"The government has to speed up the work and provide gas connectivity as MCF recently invested about Rs 305 crore for conversion of the plant for the usage of gas and we are ready to run the factory on gas. Mangala brand is well known in Karnataka and other states of India, farmers are not willing to buy any other brand in the market other than our Mangala brand. We formed joint action committee along with Tuticorin fertilizer 'SPIC' and Madras Fertilizers Limited (MFL)on September 27. Our first acion is to have silent protest in the respective companies demanding the goverment to hear the plea. If no result comes within a week, we have decided to move to Delhi and meet the PM and Union chemicals and fertilizers minister." he added

All the Mangala Karmika Okkuta members held various placards demanding that the government hear their plea.

  

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Comment on this article

  • jess, Mangalore

    Thu, Oct 02 2014

    Dr Prakash
    Pls come to MCF. The story is true as the same as reported in the news column. There is no need for the company to hide the facts. If the real story was different, then you would have seen violent protests from the labour union.

    DisAgree [1] Agree [4] Reply Report Abuse

  • Dr Prakash Harischandra, Surathkal

    Thu, Oct 02 2014

    A very Sad unfortunate thing!! the families of the employees are in distress! Its not one MP or MLA responsible its a collective effort required, where is the famed NM Adyanthaya who used it climb up the labour heirachy to reach international level. Its a shame such a large company cannot gather the resoruces to switch over to LPG, if LPG line can be laid in 3 months for ELF gas, HPCL and BPCL whats the big deal to place a line across the gas terminal to the highway already pre existing structures are present.. Either the true story is different,, As if they cannot forsee closure for the last 12 months in advance,, the true story seems to be hiding!

    DisAgree [2] Agree [4] Reply Report Abuse

  • Raj, Mangalore

    Thu, Oct 02 2014

    Dear jean You are wrong.It is not mismanagement of MCF.It is due to our political leaders who lack vision.Raw materials for urea is naptha & LNG.Urea by LNG is cheaper,but not available in mangalore,so it is not feasible to rin the plant without subsidy.

    DisAgree [2] Agree [9] Reply Report Abuse

  • Disha Rita, Mangalore

    Thu, Oct 02 2014

    Please Narendra Modi ji it is not fair , Do something rather only giving speach. Its in your hands. So many will loose their jobs and Karnataka, Mangalore will loose one of the best company.

    DisAgree [4] Agree [9] Reply Report Abuse

  • kuldesh, bangalore

    Thu, Oct 02 2014

    it was upa govt which asked them to switch to cng.what modi has to do with this.
    still he should look into this case and protect the livelihood and future of employees.

    DisAgree [3] Agree [4] Reply Report Abuse

  • jean, Mangalore

    Thu, Oct 02 2014

    Hi,

    It is not fertilizer ministry problem for stopping subsidy amount.In MCF, cost of manufacturing 1tonne urea is more than the other related naphtha based Urea manufacturing company.It is due to mishandling of present management.

    DisAgree [11] Agree [5] Reply Report Abuse

  • Rakesh, Mangalore

    Thu, Oct 02 2014

    Sorry, your suspection is wrong. Madras Fertilizers Ltd., SPIC 's Tuticorin fertilizer plant and MCF are the victims in south for this issue. As per GOI present policy, any of the Naptha based factories will not get subsidy. Most of the Factories in north, got the Gas supply already. We are ready for the gas based production(spent 300cores. But have not received the gas till now and we are punished without making any mistake.

    DisAgree [2] Agree [6] Reply Report Abuse

  • Mohan, Mangalore

    Thu, Oct 02 2014

    Dear God,

    MCF Bachavo,UB Hatavo.

    DisAgree [3] Agree [7] Reply Report Abuse

  • mangalorean, kottara

    Thu, Oct 02 2014

    before many years i used to hear stoories from mcf workers where in most of them would not work but be in the canteen and if any eatable prepared was not to the taste the workers would throw all the food out and waste the same, i always used to say this curse will follow and today it happend and so was the case of mdl too

    DisAgree [7] Agree [7] Reply Report Abuse

  • jess, Mangalore

    Thu, Oct 02 2014

    Jean,
    What mis management are you talking of. Come to MCF to know the ground reality. It is easy for people to comment without knowing the real issue. Kindly do not hurt the sentiments and feelings of the employees. Many have and are still earning their daily bread because of MCF.

    DisAgree Agree [9] Reply Report Abuse

  • fedrich, Mangalore

    Thu, Oct 02 2014

    Dear friends,

    In the year of 1991-92,UB group took over MCF from Government for nominal amount of 20 crores.Subsequent year company shows loss nearly 200 crores.Through BIFR,all loans and dues are cleared.After that company shown good result.What happened all these years profit and Sudsidy amount? No diversification or investment done by management.Today MCF paying nearly 100 crores of interest on loan.God only knows where this amount diverted.Presently DEEPAK & ZUARI trying to acquire MCF management.Let us pray for god to save MCF from UB group. Dont allow MCF become like a one more King Fisher Airlines.

    DisAgree [1] Agree [4] Reply Report Abuse

  • hassanmukka, mangalore

    Thu, Oct 02 2014

    Where is our honorable Member of Parliament? Please find him and take him to delhi to resolve the matter with the one who ordered for the closure.

    DisAgree [3] Agree [1] Reply Report Abuse

  • jesse, mangalore/ireland

    Wed, Oct 01 2014

    I heard that the pipeline for LNG or LPG whatever you call it is pending from cochin to Panambur. Installing pipeline is a long process. Why cant supply gas through tankers and save MCF.If there is will there is a way.No one gives priority to agriculture, everyone is interested in constructing huge buildings.

    DisAgree [2] Agree Reply Report Abuse

  • SURYANAARAYANA, CHIMAGALUR/MANGALORE

    Wed, Oct 01 2014

    True. Today MCF is punished for the mistakes not committed by it. Govt responsibility to provide gas supply. More over fertilizers manufacturing, distribution and pricing is under the control of the GOI. Govt should carryout gas pipe line job on the warfoot level so that interest of the employees can be protected.
    Maximum number of policies and laws were made by the party which ruled this country for maximum number of years. The present govt extended from Jul to Sept and we hope some good decision will be taken with in a couple of weeks.

    DisAgree [2] Agree [2] Reply Report Abuse

  • Hemanth, Mangalore

    Wed, Oct 01 2014

    Crores of Investment has done to run a industry like this and closure is loss of all the money. The money invested had come from all tax payers of this country. Its state government responsibility to save MCF instead of shutting down this way. I request the concerned to look after this issue an solve this as soon as possible and let the people get their jobs back. The government need to promote heavy industries in our state which will attract investors to invest and the locals get jobs.

    Mr. Modi I was against you, I have never thought to vote you or BJP but you have changed this thought in me with the work what you have done after being elected is really splendid. As a responsible person please also look into these sectors and we have faith in you sir that you will never let Indians down.

    DisAgree Agree [4] Reply Report Abuse

  • Joe Britto, Nakre/Bangalore

    Wed, Oct 01 2014

    It's sad to see M.C.F facing a shut down.

    The Government should act fast and in liasion with the Fertliser Ministry at the Centre. If it's a matter of completing a 400 km pipeline , the same should be taken up on priority and awarded to reputed privet firms like Secon Pvt. Ltd. and ensure the same is completed in the quickest possible time. The workers should be a little patient as this Precious Fertilizer unit cannot be shut down indefinitely.

    DisAgree [1] Agree [15] Reply Report Abuse

  • Suleman Beary, Udupi

    Wed, Oct 01 2014

    It is all politics...location was the problem. Think if MCF fertilizer location would have been in Vadodra?

    DisAgree [7] Agree [13] Reply Report Abuse

  • Nithin Poojary, Mangalore

    Wed, Oct 01 2014

    This is what happens when we support and caste our vote to a incompetent candidate....

    DisAgree [5] Agree [18] Reply Report Abuse

  • Raj, Mangalore

    Wed, Oct 01 2014

    MCF is the first victim of Policy paralysis of UPA Government.UPA goverment issued guidelines to all Fertiliser plant to change feed stock from naptha to LNG in as early as 2007.But after 7 years also they couldnot complete apprx 400 KM pipeline from kochin to mangalore.Now MCF is ready to recieve LNG but there us no pipeline from Kochin,and nobody knows when it will complete.

    DisAgree [5] Agree [18] Reply Report Abuse

  • Hubert D'souza, Mangalore Dubai

    Wed, Oct 01 2014

    From Japan Or From America Business People Can Invest In MCF.Search Is Going On!!!!!!!!!

    DisAgree [6] Agree [8] Reply Report Abuse

  • Mohammed, Karkala

    Wed, Oct 01 2014

    One side GOI says make in India and other side its policy closes Indian Industries.

    DisAgree [5] Agree [13] Reply Report Abuse

  • WASIM, UDUPI/DUBAI

    Wed, Oct 01 2014

    ACHE DIN ANE WALE THE....MAGAR BURE DIN A GAYE.......

    DisAgree [54] Agree [50] Reply Report Abuse

  • Reena, MANGALORE

    Wed, Oct 01 2014

    Ache din laane waale World Tour pe gaye huwe hain.

    DisAgree [23] Agree [39] Reply Report Abuse

  • Raj, Mangalore

    Wed, Oct 01 2014

    Why u blame Modi.This is result of UPA's bad decision of stopping subsidies just before election & saying to run plant by gas with out supply of gas.How can u expect a job not completed in 7 years to be completed in 7 months.Please wait same will happen in power sector where coal is not available due irregularities in coal allocation.

    DisAgree [19] Agree [17] Reply Report Abuse

  • Rakesh, Mangalore

    Wed, Oct 01 2014

    The reason behind stoppage of Urea plant is purely Govt policy. The policy is Naptha based factories will not get subsidy as LNG is cheaper than Naptha. MCF is already ready for LNG based production. But LNG is not yet supplied to MCF, which is Govt responsibility. Hence for survival of MCF atleast till LNG is available, subsidy has to be given for Naptha based production or LNG has to be supplied.

    DisAgree [2] Agree [31] Reply Report Abuse

  • Lenston Dsouza, Nandalike/Kuwait

    Wed, Oct 01 2014

    Really a sad news for innocent workers & thier depended familes.. Our Gov. should work fastly at the time of Natrual Gas based urea prodction rule. Eeven MCF also pressarise the Gov. to finish the pipeline work at the time of grace period. But at that time all are thought may be, Gov. will give excuse for all these matters.. If Gov. will excuse for all these negelegency, then whats the use of new rule implimentaion. We have courtesy on innoent workers, still rule is rule & its warning for all sleeping workers as well as its slow management too. This time protest, if workers shows on time of slow pipeline work, may be today these workers can live peacefully.. I hope gov. will listen these workers tears & even Fertilizer minister from Karnataka itself. Its an awarnes/warning for all slowdown manegments & its workers.

    DisAgree [2] Agree [8] Reply Report Abuse

  • HERI, MANGALORE/UK

    Wed, Oct 01 2014

    Hilarious....

    DisAgree [3] Agree [2] Reply Report Abuse

  • Stan, Udupi/ Dubai

    Wed, Oct 01 2014

    Ironically central Fertilizer minister is from Karnataka and he is responsible for the plight of workers families. Begining of acche din for Mangloreans.

    DisAgree [8] Agree [21] Reply Report Abuse

  • JOHN R LOBO, Kaikamba/Dubai

    Wed, Oct 01 2014

    He is busy with " Shakuni Aata"

    DisAgree [7] Agree [14] Reply Report Abuse

  • Thomas, Mangalore

    Wed, Oct 01 2014

    Dear friend,sorry for your comment.You are blindly commenting on the only one fertilizer industry in Karnataka.It sells 70% of the product to the state of Karnataka.Subsidy issue should have been formed looking into the real ground reality.Without connectivity of gas line,how the GOI say "subsidy will not be given".Today we are talking about make in India,now situation has come to close down the Indian industry and we may forced to get the fertilizer from outside.Next Oh God!! Are we ready to receive food grains from outside if the cost of the production is more than the imported cost at the given time.Please look at the matter seriously and comment.

    DisAgree [4] Agree [14] Reply Report Abuse

  • Af, mangalore

    Wed, Oct 01 2014

    How can Modi govt do this?
    the great fertilizer central minister is sleeping? still dreaming with modi mania.

    DisAgree [9] Agree [22] Reply Report Abuse

  • avani, mlore

    Wed, Oct 01 2014

    Mallya desperately needs funds. So he wants to come out of this Company by selling his holdings. Deepak Fertilizers & Zuari Agro have offered to buy through bids. Initially their bid was too low but now as per news it is around Rs. 95 per share. The MCF shares which were trading at Rs 85 five days ago today crossed 100 and trading at Rs. 101. So all these shutting down etc is temporary. Do not worry. It will soon operate again may be in a different way. Be optimistic.

    DisAgree [5] Agree [17] Reply Report Abuse

  • sunita, mangalore

    Wed, Oct 01 2014

    The closure of MCF is unfair considering its reputation as most efficient in its vintage & also it has many awards as best safe industry & has also awards on environment & energy conservation from GOI & GOK.
    it is high time all public representatives will fight for injustice to only premier fertiliser in karnataka.
    more than 2000 families directly&15000families indirectly suffer.port,ancilleries,packing,engineering all industries suffer.
    Mangalorians suffer.

    DisAgree [2] Agree [8] Reply Report Abuse

  • mohan amin, mumbai

    Wed, Oct 01 2014

    Sad & unfortunate

    DisAgree [1] Agree [3] Reply Report Abuse

  • sunil kulkarni, mangalore

    Wed, Oct 01 2014

    The main problem leading to the situation is the faulty policy of the GOI. The company has already invested Rs 305 crores and made itself ready to receive LNG gas to be received from Cochin. The LNG terminal is ready at Cochin (Petronet LNG terminal) and the gas pipeline of 480 kms has to be laid from Cochin to Mlore. The work started, but due to the protests in Kerala, hardly 10 kms of line is complete. MCF has entered into agreement with GAIL for supply of gas. GAIL is a Govt agency and it has not honoured the MOM for supply of gas. It is very obvious that the gas has to be made available by GOI as all the gas grid is operated by GOI. It is the injustice to MCF and also South India, which is rated as the best and safest Naphtha running company in India. All Mloreans should protest and take up for opening of the company.

    DisAgree [1] Agree [21] Reply Report Abuse

  • j.anata, Mangaluru / Bengaluru

    Wed, Oct 01 2014

    Siddu govt continues to show apathy & babaji ka tuloo to MCF workers...He will not do anything to revive it.

    Two weeks back the 1500 Cr Hero Factory went to Andhra Pradesh....This Govt did not do anything to help industry or trade in the state

    DisAgree [13] Agree [13] Reply Report Abuse

  • ISMAIL K PERINJE., PERINJE.

    Wed, Oct 01 2014

    We are wooing foreign companies to invest in India while MANGALA well known brand in fertilizers facing closure for technical reasons.2000 workers going to hang up their gloves?What is the industrial policy of BJP govt ?Closure?disinvestment or sale?Anyhow,we need this vital industry should run business as usual.We request Centre and state to look in the matter on war footing.

    DisAgree [21] Agree [29] Reply Report Abuse

  • Dinesh Poojary, Kundapura/Bengaluru

    Wed, Oct 01 2014

    ISMAIL K PERINJE., PERINJE.

    Why can't your Siddu take action on this and take this to Central Govt? Karnataka Govt is also a stake holder in MCF. He takes some nonsense matters like Kannada medium to Modi. Which is more important?

    Siddu said Honda Company wanted free land in Dharwad and that is why they went to AP. But Honda company clarified that they never sought free land. From last one year they have been trying to get land in Dharwad with state govt. But the whole Govt was sleeping. That is why they decided to move out.

    But siddu lies to save his face.

    DisAgree [32] Agree [29] Reply Report Abuse

  • j.anata, Mangaluru / Bengaluru

    Wed, Oct 01 2014

    Reviving MCF is the ONUS OF THE STATE GOVT & AS USUAL, DRUNKO SIDDU IS NAPPING....

    Two weeks back the 1500 Cr Hero factory was lost to AP....What is the inept & stupid govt doing to save trade & industry in the state?????

    DisAgree [10] Agree [9] Reply Report Abuse

  • ISMAIL K PERINJE., PERINJE.

    Thu, Oct 02 2014

    Shame on Modi,Ananthu(what a fake fertilizer minister!)respective MP of Mangalore.What is state stake?It could more stake than state.2000 employees loosing livelihood
    because no tangible action of Central -state Govt?I must say it is big embarrassment and contradiction to Govt of Karnataka in general Modi/Ananthu/Central govt in Particular.

    DisAgree [3] Agree [5] Reply Report Abuse

  • jess, mangalore

    Wed, Oct 01 2014

    For all those who want to comment, kindly read the report and be sensitive to the issue. It is purely the policy of the government that has brought down the shutters of MCF. Let us all unite in this hour of crisis.

    DisAgree [1] Agree [25] Reply Report Abuse

  • PRP, MANGALORE

    Wed, Oct 01 2014

    If judiciary is weaker, some should come up to give justice.

    DisAgree [1] Agree [7] Reply Report Abuse

  • Joseph F. Gonsalves, Bannur, Puttur / Mangalore

    Wed, Oct 01 2014

    Chaaiwaala government is brooming all the production units.

    They have no money to run MCF.

    They have money for INDIA SHINING AND CHAAIWAALA SECURITY PLUS WANDERING JOURNEYS FROM COUNTRY TO COUNTRY.

    DisAgree [24] Agree [21] Reply Report Abuse

  • Albert, Mangalore

    Wed, Oct 01 2014

    Congi Dongis lead by Itlaian maid along with her Less IQ son pappu & her son in law Rober vadra looted India.Time to kick them out of country

    DisAgree [7] Agree [8] Reply Report Abuse

  • K. S. Mayya, Mangalore/Bangalore

    Wed, Oct 01 2014

    Although sympathize with employees who have lost their job, MCF must close down unless it can reinvent itself.
    The work ethics of employees meant that any such order wherein a option is given or face closure can never be met. A company that started in 1974 that is 40 years ago is facing closure. Since then till now, other than producing fertilizer based on imported manufacturing technology how much effort were spent on improvisation increased output inputs to improve efficiency (new chemistries, energy conservation, cost reduction) from says KREC and other top insitutions from India. I am sure these are alien words for these employees as well as management. It is therefore good if it closes down as government does not have the will to run and build such institutions. The concept behind MCF was good considering the enoromous fertilizer subsidy. But I am not sure economics really was in the mind of people at helm.

    DisAgree [7] Agree [13] Reply Report Abuse

  • Sachidanand Shetty, Mundkur/Dubai

    Wed, Oct 01 2014

    This is how these Industrialists play with the sentiments of farmers. When they wanted to build up factory, they purchased the farmers land with very cheap rate….then they will run the business for few years and one fine day they close down by giving various reasons and sells the land for real estate development with huge margin but poor farmer simply looks at open sky and pray with GOD for better rain somewhere else

    DisAgree [12] Agree [32] Reply Report Abuse

  • Ahmed, Mangalore

    Wed, Oct 01 2014

    Govt. should allow MCF to function as it was functioning until they get LPG supply. Leaving thousands of workers jobless is a wrong decision whatever the reason may be. Govt. should workout to get the LPG supply ASAP to this huge factory.
    Another point, It was Mr. Mallya who came to the rescue of MCF when it was making loses. But, no one came to his rescue when his King Fisher Airline was making loses.

    DisAgree [3] Agree [57] Reply Report Abuse

  • Allen, Mangalore

    Wed, Oct 01 2014

    Mr Mallya is not person to come to the rescue of anybody. He bought this sick company with an eye for the vast vacant land attached to the plant in this prime location!

    DisAgree [8] Agree [19] Reply Report Abuse

  • HENRY MISQUITH, Bahrain

    Wed, Oct 01 2014

    Mallya & his family have lived like a king but ruined the company & lives of poor workers.

    DisAgree [57] Agree [21] Reply Report Abuse

  • jess, mangalore

    Wed, Oct 01 2014

    Hello Mr. Henry Misquith,
    Kindly read the report before you comment. This has got nothing to do with Mr. Mallya or his family. This is the policy of the GOI which has forced the company to pull down shutter. Be sensitive to the issue pls.

    DisAgree [9] Agree [62] Reply Report Abuse


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Title: Mangalore: MCF closes shutters- Labour union protests



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