The Hindu Business Line : TELK disinvestment: Kerala Minister holds talks with Left leader

The Left favours entering into an agreement with ZTR of Ukraine, which accounts for nearly 30 per cent of the total supplies of transformers in the world.

Thiruvananthapuram , Aug. 11

THE Opposition Left Democratic Front (LDF) has come down heavily on the State Government's move to disinvest part of the equity of the public sector Transformers and Electricals Kerala Ltd (TELK) in favour of Siemens India Ltd.

At a meeting between the Opposition leader, Mr V.S. Achuthananthan, and the Industries Minister, Mr P.K. Kunhalikutty, here on Wednesday, the former pointed out that there was no substance in the argument that Siemens was being brought in to ensure infusion of the latest technology to the company's products.

The move is to sell 46.65 per cent of the TELK's equity to Siemens, which will mean that the management of the company will still remain in the public sector.

However, the Opposition has pointed out that as per a government order dated May 25, 2003, the company is set to be fully disinvested over a period of four years.

On the company's target for technology upgradation , the Opposition has taken the stand that Siemens in this respect, is way below TELK. Instead, it favours entering into an agreement with ZTR of Ukraine, which, according to it, accounts for nearly 30 per cent of the total supplies of transformers in the world.

Moreover, ZTR has approached TELK for an agreement to participate in a tender floated by the National Thermal Power Corporation (NTPC) for one of its projects. In this case, ZTR has not only not asked for any stake in TELK but is prepared to invest Rs 15 crore in the venture. Thus , the Government should consider entering into an agreement with ZTR for the technology upgradation of TELK, it is argued.

It has also been pointed out that TELK has been operating profitably over the last three years. In 2003-04, the company made a profit of Rs 5.20 crore and it is expecting a profit of Rs 8.75 crore in the current year.

Also, the turnover of the company is projected to increase from Rs 93.2 crore to Rs 105 crore. As per the latest estimates, TELK has in hand orders worth Rs 125 crore.

The common minimum programme of the United Progressive Alliance (UPA) Government at the Centre has emphasised that there will not be any disinvestment in profit-making public sector companies. On that basis, there is no justification for the move to privatise TELK that has been making profits over the last three years, says the Opposition.

Mr Kunhalikutty told newspersons after the meeting that the Government would shortly hold a meeting with trade unions on its public sector restructuring policy.

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