Financial Daily from THE HINDU group of publications
Thursday, Jul 01, 2004
Financial Daily from THE HINDU group of publications Thursday, Jul 01, 2004 |
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Corporate
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Sick Units Hind Latex to take over KSDP Our Bureau
Thiruvananthapuram , June 30 THE Kerala Cabinet will consider a proposal by the Central public sector unit, Hindustan Latex Ltd to take over the ailing Kerala State Drugs and Pharmaceuticals Ltd (KSDP). The Industries Minister, Mr P.K. Kunhalikutty, said in the State Assembly on Wednesday that the way had almost been cleared for handing over the State public sector company to Hindustan Latex. This followed lack of interest on the part of the Health Department to take over the unit. The Cabinet will take up the proposal at its meeting next week. KSDP has accumulated losses of Rs 44 crore, the Minister said. Referring to the case of another State-owned unit, Autokast Ltd, he said the Government could do little to salvage the company. Autokast, which was set up with a capital of Rs 20 crore, had run up losses totalling Rs 130 crore. Though the Government had implemented three revival packages, they did not yield any tangible results, Mr Kunhalikutty said. He further pointed out that even if the Government were to pump in more money, it would result in further losses. Going by the current estimates, the annual loss would be around Rs 3 crore. The question that needed to be answered was whether it was proper to pump in crores of rupees from the exchequer into a perennially loss-making company, he added. The Minister said the Government had nothing against keeping the two companies in the public sector. It was prepared to give up all privatisation plans if the units could be run profitably. Later, following a demand, he announced that a meeting of trade union representatives would be convened next week to discuss the issue of rehabilitation of the company.
More Stories on : Sick Units | Mergers & Acquisitions | PSU | Kerala | Pharmaceuticals
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