Monday, January 9 2006 18:04 Hrs (IST) - World Time -

New Delhi: Putting to rest any uncertainty over its acquisition of the Rs 1,900 crore Oswal's Shahjahanpur Urea Plant, the Krishak Bharati Cooperative Ltd today (Jan 9,2006) said it had the Government's firm support for the deal and would make the final payment of Rs 900 crore for the unit this week.

"We have already taken over the management control of the Shahjahanpur plant and have made a payment of over Rs 500 crore", The Finance Director of Kribhco B.D.Sinha told sources.

Kribhco, with has about 67 per cent Government stake, finalised the deal in November last year through a joint venture with Shyam Basic Infrastructure.

The agreement vests management and marketing control in Kribhco's hands.

Sinha denied the deal was overpriced and said these reports were being floated 'out of business rivarly'.

He said the Government was 'firmly behind' Kribhco's deal and the Centre was aware that its debts are being secured. Sinha said a sum of Rs 450 crore of the payment to Oswal group would be withheld pending clearance of Government dues by Oswal and other liabilities.

Government has estimated that the Oswal plant owes it Rs 250 crore, Sinha said, adding this payment would have to be factored while making the payment for the deal.

The high court has stayed the recovery of Rs 250 crore from Oswal, Sinha said, adding Kribhco was awaiting the final order in this regard.