The Hindu Business Line : Agreement on TRL to be signed soon

THE State Government has issued orders for signing a memorandum of agreement (MoA) with Mr N. Damodaran, Chairman and Managing Director of the Coimbatore-based NDEE group, who had submitted a proposal over two years ago to revive Travancore Rayons Ltd (TRL) at nearby Perumbavoor.

Official sources told Business Line on Tuesday that the Government had issued the order last week after studying in detail the proposal and the concessions demanded by the promoter at various levels by the departments concerned and the Cabinet Sub-Committee.

The MoA will cover "all concessions and relief" agreed to by the concerned as well as the obligations on the part of the promoter.

It is understood that the State Cabinet has already approved the draft detailed memorandum of agreement, which would be signed soon, the sources said. Soon after the agreement is signed, the promoter is expected to start discussions with financial institutions, banks, etc., for a one-time settlement.

Besides, the promoter will discuss with the trade unions for a restructuring and rephasing process of the work force, they said. It is understood that the promoter might effect a reduction in the number of workers through VRS and redeployment.

The Cabinet had approved the rehabilitation proposal about three months back and decided to sign the detailed MoA. This is the probably first instance in which the rehabilitation proposal of a private party has received the unanimous support of all the trade unions as well as the ruling and Opposition parties alike, trade union sources said.

As per the rehabilitation proposal, the promoter is to invest Rs 530 crore over a period of five years for modernisation of the company.

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