Deccan Chronicle

LG Polymers completes removal of Styrene Monomer gas from Vizag, ships back to Korea

Deccan Chronicle | DC Correspondent

Published on: May 18, 2020 | Updated on: May 18, 2020

It has shipped the entire stock lying at its Visakhapatnam plant and styrene tanks that were at the local port there, said LG Polymers

LG Polymers completes removal of Styrene Monomer gas from Vizag

LG Polymers completes removal of Styrene Monomer gas from Vizag

Visakhapatnam: LG Polymers on Monday said it has completed transportation of its inventory of deadly Styrene Monomer (SM) from Visakhapatnam to South Korea.

It has shipped the entire stock lying at its Visakhapatnam plant and styrene tanks that were at the local port there, said LG Polymers, a step down firm of South Korean Petro giant LG Chem, said in a statement.

Earlier this month, the gas-leak incident killed at least 11 people and forced the evacuation of thousands.

"There is now no SM left at the LG Polymers plant in Vizag," LG Polymers Managing Director Jeong Sunkey said.

Besides, an eight-member team sent by the South Korean company from its Seoul headquarter to investigate the Visakhapatnam gas leak incident and rehabilitate the victims of the tragedy has started its work.

It has commissioned a special task force consisting of more than 200 people to actively support the bereaved victims and families.

"This team has been visiting people at the hospitals and their homes. Food and medical services have been organised for the returning residents. Various support activities such as supplying medical and household goods and sanitation of homes will be continued," it said.

LG is also is working closely with related authorities to analyze the cause of the incident, prevent a recurrence, and support damage recovery in a prompt and expedient manner.

"Additionally, in collaboration with related institutions, we are devoting our resources to analyse the cause of the accident, prevent re-occurrence, and most importantly provide assistance to the families of the deceased and injured," said Sunkey, adding "Our immediate focus is to provide assistance to the people in the local area to help them continue with their normal lives as soon as possible".

LG has set up Suraksha Hospital and will take care of all residents' health check-ups and future treatment.

"We will continue to do our best to ensure life is returned to normal," he added.

On Sunday, the National Disaster Management Authority (NDMA), the nodal department, announced lockdown 4.0 till May 31 to check the spread of the novel coronavirus.

The lockdown was first announced by Prime Minister Narendra Modi on March 24 for 21 days in a bid to combat the COVID-19 pandemic. It was first extended till May 3 and again till May 17.

In March, RBI had allowed a three-month moratorium on payment of all term loans due between March 1, 2020 and May 31, 2020.

"With the lockdown now extended up to May 31, we expect RBI to extend the moratorium by three months more," SBI's research report- Ecowrap said.

The report said the moratorium for three more months will imply that companies need not pay till August 31, 2020, and this means that there is almost minimal possibility of companies being able to service their interest liabilities then in September.

Failing to repay the interest liabilities will mean the account might be classified as non-performing loans as per the RBI norms.

"Thus, the RBI needs to give operational flexibility to banks for a comprehensive restructuring of the existing loans and also a reclassification of 90 day norm," the report said.

The RBI's June 7 circular is stringent and gives little flexibility to banks.

"The revised restructuring norms should give banks to restructure like say converting interest liabilities up to March 2021 into term loans, repayable in 3-5 years for working capital and at the end of the tenor in case of term loans, the report said.

RBI also needs to also clarify whether working capital expansions classify as COVID-19 debt, it said.

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