Financial Daily from THE HINDU group of publications
Friday, Apr 02, 2004
Kerala Cabinet okays Trayons promoter's revival plan
Kochi , April 1
THE State Cabinet on Wednesday approved the Coimbatore-based promoter, Mr N. Damodaran's revival proposals for Travancore Rayons Ltd (TRL) at nearby Perumbavoor.
According to Mr P.V. Sukumaran, Joint Convenor of the Rayons Samrakshana Samithi, a detailed memorandum of agreement (MoA) would be signed soon.
"The investor group will then initiate discussions with the financial institutions and banks etc. for a viable settlement of their dues. Also, the promoter group will start discussions with the trade unions for a restructuring/re-phasing process of the work force shortly," Mr Sukumaran said.
The company, which has been non-operational for over 30 months now, will resume operations shortly, he said. The proposal for rehabilitation "is having unanimous support of all the trade unions, as well as the ruling and Opposition parties."
The Samithi is headed by the acting KPCC President, Mr P.P. Thankachan, and supported by Mr Saju Paul, local MLA (CPI-M), he said.
As per the rehabilitation proposal, the promoter is to invest Rs 530 crore spread over a period of five years for modernisation of the company, official sources told Business Line.
In the first year, the promoter will invest Rs 60 crore for renovation of the existing plant. All the old machinery will be phased out in three years, the sources added.
Earlier in December, the State Cabinet had in principle accepted the revised rehabilitation package submitted by the promoters after diluting their initial demands.
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 monthly wages of Rs 500.
The initial rehabilitation package submitted by the promoters was rejected both by the BIFR and AAIFR, which had ordered the winding up of the company early last year.
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