Imphal, January 05: The Manipur Industrial Development Corporation (Manidco) Employees� Union has proposed that State Government could bail out the Corporation from its financial doldrums by providing over Rs 13 crores liable to the public sector undertaking instead of returning Central assistance due to failure for proper utilisation.

Highlighting various schemes propagated by Mandico units through loan assistance the employees� body in a statement cited non-release of Government liabilities owed to the Corporation as the main factor for gradual decline of the Corporation.

Among others the Union listed loan amount of over Rs 5 crore extended to different industrial units through Manipur Pulp and Allied Products limited and another sum of Rs 6 crore under Manipur State Drug Pharmaceutical Limited which ought to have been replenished by the State Government.

Manidco is also the financial source (guarantor) regarding the Manipur Pulp and Allied Products Limited�s working capital totalling around Rs 40 lakhs.

However, failure by the industrial unit to repay the second loan amount ended with Manidco slapped a penalty of over Rs 1 crore by the Central bank of India and Debt Recovery Tribunal after a failed legal tussle, detailed the Union.

Rather than bailing out manidco from the huge fiscal deficit State Government�s callousness sounded the death knell for the Corporation due to debt burden.

Following closure of the financial institution in the wake of State and Central Government signing a memorandum not only aspiring entrepreneurs suffered jolt but the employees were also left in the lurch with retrenchment and voluntary retirement package as the only glimmer of hope.

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