Metkore Alloys, one among 24 Defaulters in the NSEL crisis has declared a lockout at its Ferro-chrome manufacturing plant located in the Andhra district of Srikakulam

1. Metkore Steel and Alloys declares
lockout at Tekkali plant

2. History of Metkore
• The company was engaged in the manufacturing of high grade
carbon Ferro-chrome for use in the stainless steel industry
• The plant has an annual capacity to produce 30,000 tonnes of
Ferro-chrome products
• Metkore, which is listed on both the National Stock Exchange
(NSE) and Bombay Stock Exchange (BSE), had reported a net
profit of Rs 48.75 lakhs and a total income of Rs 105.25 crore
for the quarter ended December 2014

3. Inspection was interrupted
• In June last year the factory employees reportedly
blocked the representatives of the public sector Steel
Authority of India (SAIL) and NSEL from inspecting the
Ferro-chrome stocks that were kept at the company’s
warehouses in Tekkali town
• The inspection was planned after the MPID court
allowed the auction of Metkore’s Ferrochrome stocks
worth of Rs 91 crore under the supervision of the
monitoring and auction committee appointed by the
Forward Markets Commission (FMC)

4. Where is the plant located?
• Metkore Alloys, one among 24 Defaulters in
the NSEL crisis owes Rs 94.83 crore
• They declared a lockout at its Ferro-chrome
manufacturing plant located in the north
coastal Andhra district of Srikakulam

5. When was the MD arrested and why?
The company’s managing director Prashant
Boorugu was arrested last year by the EOW for
default of payment to the National Spot
Exchange Limited (NSEL)

6. Faking the real reason for lockout
• The company’s management posted a lockout
notice on the factory gates
• Around 300 workers were employed in the
factory’s operations
• The company cited increased power costs, losses
and other factors as the reason for declaring the
lockout