Financial Daily from THE HINDU group of publications
Tuesday, May 24, 2005
Financial Daily from THE HINDU group of publications Tuesday, May 24, 2005 |
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Corporate
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Sick Units Employees unhappy over delay in TRL reopening G.K. Nair
Kochi , May 23 EMPLOYEES of Travancore Rayons Ltd (TRL) at Perumbavoor seem to be losing patience as reopening of the unit is being delayed because of the stalemate in reaching a one-time settlement (OTS) by promoters with the banks and financial institutions. According to reliable sources, the promoters are yet to submit their third revised offer to the financial institutions for the OTS. The inordinate delay in concluding the OTS would lead to a cascading effect on settlements on various other issues, which in turn would prolong the re-opening of the company, some of the trade union leaders apprehended. They told Business Line that the promoters were sticking to maximum concessions while the banks and financial institutions were not showing any interest to dilute their position. About seven months have elapsed after signing the agreement with the Government by the promoters for re-opening of the company and the OTS issue still remains to be settled, they alleged. At the meeting called by the Chief Minister, Mr Oommen Chandy with the representatives of the Banks, Financial Institutions and the promoters failed to make any breakthrough on the OTS issue, the CM is said to have advised the promoters and the bankers to continue their discussions and arrive at a mutually acceptable position before the next meeting scheduled for April 27. The banks/FIs and the promoters have to come down from their present stand for reaching a settlement, Mr P.P. Thankachan, trade union leader and former Speaker of the State Legislative Assembly said. Both parties were sticking to their own positions and hence the meeting "did not reach anywhere," he said. The delay in reaching the OTS has impeded the progress on discussions with the trade unions and on important issues to be settled for re-opening of the company, he said. The Government had signed an agreement with the Coimbatore-based promoters, NDEE Group in July last for reviving the unit. As per the agreement all the loan liabilities including those taken by the company under Government guarantee would be taken over by the promoters and would be settled through one-time settlement. Similarly all the dues to the State Government and Government agencies would also be settled. Government concessions and benefits would include permission to pay the electricity charges and sales tax in instalments and assistance and cooperation for setting up of new hydroelectric projects, according to official sources. 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, they said. In the first year, the promoter would invest Rs 60 crore for renovation of the existing plant. All the old machineries would 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. At present, the unit is maintained by a skeleton staff of 70 people on a monthly wages of Rs 500, trade union sources said.
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