The Karnataka Silk Industries Corporation (KSIC) Ltd on Saturday repaid a loan of Rs 22 crore, which it had borrowed between 2003 and 2006, to the government.
KSIC chairman D Basavaraja presented a cheque to Chief Minister Siddaramaiah. The KSIC had obtained the loan to pay the VRS compensation to 900 employees who had quit the Channapatna and Kanakapura factories in 2003-2004.
The government had given the loan on the condition that the KSIC pays it back within seven years. However, the KSIC had neither repaid the amount, nor had it paid the dividend to the government. Basavaraja said the KSIC had made a profit of Rs 60 crore in the past two years. “During the board meeting in March, it was decided to repay the loan in its entirety,” he added.
Published 20 August 2016, 20:03 IST