Yogi Govt Checking Debt Profile of Companies Who Signed MoUs With UP

Condemning Yogi government's move, AIAP chief Narendra Giri​ said that it will cause inconvenience to common man. He has appealed that district administration to review the order.

Lucknow: Uttar Pradesh chief minister Yogi Adityanath has ordered to check the debt profile of companies who have proposed investments at the recently concluded UP Investors’ Summit last month.

Yogi's order comes in the backdrop of alleged bank loan defaults and frauds by private companies.

The state government has signed more than 1000 MoUs worth 4.28 lakh crores during the summit. Now, the government is conducting due diligence with each MoU to ensure the seriousness of the investors.

As per the information, Uttar Pradesh Infrastructure and Industrial Development Commissioner (IIDC,) Anup Chandra Pandey has directed the nodal officers to carefully analyse each MoU pertaining to their respective departments for the debt profile, financial standing, turnover and business verticals of each investor, and forward their recommendations by Friday.

According to Officials, Korea based firm Worldbestech Company will invest Rs 90,000 crore in projects like gas power plant, food processing ventures and cold storage, which constitutes almost 20% of the total MoU's signed during the UP Investors’ Summit.

“"We shall set up a gas-based power plant and allied companies in Mathura that would also solve the problem of potato growers of Mathura and adjoining districts," Worldbestech CEO and President K K Kim said while briefing state Chief Minister Yogi Adityanath on the investment plans.

On February 22, the Central Bureau of Investigation arrested Kanpur-based industrialist and Rotomac owner Vikram Kothari and his son Rahul, both directors in the company, for alleged default on loan repayments to the tune of Rs 3,695 crore.

Meanwhile, another Kanpur-based company Shri Lakshmi Cotsyn Limited had landed in a soup by failing to pay off 3900 crores borrowed from a consortium of 16 banks led by Central bank of India.