Financial Daily from THE HINDU group of publications
Friday, Apr 02, 2004

Cross Currency

Group Sites

Corporate - Sick Units

Kerala Cabinet okays Trayons promoter's revival plan

G.K. Nair

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.

More Stories on : Sick Units | Kerala

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Reliance, Niko find gas in K-G Basin

Godavari Fert ceases to be CFL subsidiary
Orchid's anti-diabetic molecule clears clinical trials
Continental to source tyre tubes from Metro
No clearance to ChemPlast Krishnapatnam unit
Assocham plea to abolish MAT
Bharat Petroleum announces VRS
Tata Steel, workers' union in pact for JUSCO transfer
Spanco issue
Kerala Cabinet okays Trayons promoter's revival plan
LG bullish on India; plans to triple growth
Philips India aims 100 pc growth in 5 yrs — Proposes to sell HTP unit
Tata Steel output touches 4 million tonnes
Hero Honda sales cross two-million mark in a year
MMTC Singapore arm posts record turnover — Makes foray into sophisticated, competitive markets
Maruti sales rise 30 pc in 2003-04
HPC, subsidiary post Rs 870-cr combined turnover
Bajaj Auto sales rise 26 pc
BEML posts Rs 1,771-cr sales turnover
TVS Motor sales grow at 2.5 pc
Ford India scores record sales in March
HAL registers record turnover at Rs 3,690 cr
New VSP Director
Coke gets reprieve in Kerala

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line