Financial Daily from THE HINDU group of publications
Tuesday, Feb 24, 2004
Financial Daily from THE HINDU group of publications Tuesday, Feb 24, 2004 |
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Corporate
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Sick Units TRL revival plan may see light next month G.K. Nair
Kochi , Feb. 23 AT last, the prospects of the revival of ailing Travancore Rayons Ltd (TRL) at nearby Perumbavoor have brightened with the Government and the promoters have sorted out all the thorny issues and arrived at a mutually acceptable formula to re-open the company. As a result, a detailed MoU/agreement has been prepared by the Government, which has been sent to the Legal Department for its clearance, reliable source at the Industry Minister's office told Business Line on Monday. He said that simultaneously, as the Industries Minister desires to reach a consensus on the proposal with the opposition parties, the salient features of the detailed draft have been sent to the local MLA, who coordinates with other opposition political parties and trade unions for rehabilitation of the unit for their comments/suggestions. The entire exercise is likely to be completed in 10 days time and then the detailed MoU would be sent to the Cabinet, which has already approved the proposal in principle, he said. The detailed MoU indicating all the concessions and other conditions with the promoters would be positively signed before March-end, he said. Details of the MoU would be made known after signing it, he added. Earlier in December, the State Cabinet had in principle accepted the revised rehabilitation package submitted by the Coimbatore-based promoters, Dinosaur Industries Ltd. Officials of the Departments of Finance, Electricity and Forest had discussions with the promoters last month and reached an agreement on the demands of the promoters such as concessions in electricity charges, sales-tax payments, long-term lease of land and allotment of forest land etc., besides working out modalities for finalising a one time settlement with the financial institutions and banks and comple- ting the formalities with the statutory institutions and those related to SEBI, he said. The Chief Minister had said earlier that the State Government would extend all concessions that other States are granting to investors. The DIL has submitted a proposal on March 9, 2002 involving an investment of Rs 500 crore to be made in three phases of Rs 60 crore, Rs 175 crore and Rs 265 crore. Their demands included a number of concessions and facilities from the Government. They had, however, diluted the demands and submitted a revised proposal as required by the Government which was accepted by the state cabinet in principle. The initial proposal of the promoters was not accepted by both the BIFR and the AAIFR, which, in fact, had ordered winding up of the unit. Hence the issue is pending in the Kerala High Court. The company is under lay-off for over two years now and about 1,200 workers are without wages. At present, the unit is maintained by a skeleton staff of 70 people on a monthly wages of Rs 500, they said.
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