The Hindu Business Line : Trayons revival to take 3-4 months

THE reopening of the sick Travancore Rayons Limited (TRL) at nearby Perumbavoor under a rehabilitation proposal approved by the State Cabinet last month might take another three to four months as the promoters have to finalise various issues such as reduction in labour and settlement of accounts with the financial institutions.

The promoters, Coimbatore-based Dinosaur Industries Ltd (DIL), and the State Government have yet to sign the detailed agreement, which is likely to be inked only after the elections to the Lok Sabha scheduled for May 10 in the State.

The State Cabinet last month had approved the rehabilitation proposal and decided to sign a detailed memorandum of agreement (MoA) with the promoter, Mr N Damodaran. After signing the MoA, the investor group would initiate discussions with the banks and financial Institutions for a viable settlement of their dues.

Besides, it would commence discussions with the trade unions for a restructuring/re-phasing of the work force, reliable sources said. It is understood that the promoters might effect a reduction in the number of workers through VRS and re-deployment elsewhere.

Probably this is the first ever event where the rehabilitation proposal of a private party has received unanimous support of the trade unions as well as the ruling and opposition parties alike, including the CITU, trade union sources 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. The old machinery will be phased out in three years, they added.

The company is under lay-off for over two years now and about 1,200 workers are without wages. The unit is maintained by a staff of 70 people on a monthly wage of Rs 500.

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