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Mony K. Mathew

The company is also examining the possibility of tying with major colleges in the State for offering `campus training'.

THIRUVANANTHAPURAM, July 3

THE public sector Kerala State Electronics Development Corporation (Keltron), languishing under huge liabilities and shortage of funds, is turning increasingly to offering training in information technology and other areas to hold its bottomline.

The latest in its series of initiatives on the education front is a tie-up with the Vikram Sarabhai Space Centre (VSSC) here for offering tool room training to students at the Controls Division at Aroor near Kochi. The project is a joint effort of Union and State governments, apart from Keltron.

Mr V. Ramkumar, Managing Director of Keltron, told Business Line that the Centre would assist the project by extending 75 per cent of the machinery cost, which worked out to Rs 10 crore. The training course is being designed in association with Government Toolroom and Training Centre (GTTC) in Karnataka.

Keltron, which has taken up training in information technology in a big way, is also examining the possibility of tying with major colleges in the State for offering `campus training' for students. Besides, efforts were on to take the training programme overseas, especially to the Gulf region, Mr Ramkumar said.

In regard to the company's manufacturing activities, he said it had developed a railway signalling system the samples of which had already been sent to the authorities. It would, however, take some time before the company started getting orders, he added.

Another positive development for the company is the setting up of a task force by the Defence Ministry to examine the possibility of outsourcing some of the components needed for the Army and the Air Force to Keltron and Kerala Hitech Industries Ltd (Keltec), another State-owned enterprise.

So far, Keltron has been supplying systems and components to the Navy only. On the export front, Keltron is scouting for partners in the Gulf region for marketing some of its products such as computers and CCTV systems. The company already has agency arrangements in the Gulf for the purpose.

On the attempts at restructuring the company, Mr Ramkumar said the major hurdle was the liabilities, to the tune of around Rs 235 crore, due to the banks and financial institutions. Though there had been several rounds of discussions with the lenders for a one-time settlement of liabilities, a final agreement had remained elusive.

He noted that the voluntary retirement scheme opted by more than 700 employees in 1999 had not resulted in any substantial financial gain to the company. While the company could save Rs 4.2 crore by way of salary per year, it was paying Rs 3.8 crore as annual interest on the funds it borrowed to settle the VRS dues to the employees.

The problem could be solved once the company received the assistance earmarked to it from the loan to be extended by the Asian Development Bank to the State Government, he said.

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