Pump manufacturer and water business company Kirloskar Brothers (KBL) has taken over the management control of the ailing The Kolhapur Steel (TKSL). A communication from the company on Wednesday said Kolhapur Steel will now have majority of directors nominated by KBL. Kolhapur Steel had run into financial problems, and was referred to the Board of Industrial and Financial Reconstruction (BIFR). According to an order passed by BIFR on September 10, 2007, KBL will pay Rs 14.86 crore in a 'no lien' account, which is earmarked for payment of dues of TKSL to Shree Suvarna Sahakari Bank and another creditor. TKSL, incorporated in 1965, is engaged in manufacturing alloy steel castings, pumps/valves, and general engineering goods. The capacity of TKSL steel castings can be used by KBL to meet its captive demand.The share purchase agreement will be executed upon the approval of BIFR.
