The Hindu Business Line : Kerala CM seeks Hindalco plan for plant re-opening

In a bid to re-open the Hindalco smelter unit at nearby Eloor, that remains shut for about three years now, the Chief Minister, Mr V.S. Achuthanandan, has asked the company's management to submit a proposal within a month with minimum demand required for re-opening the unit.

At a meeting convened by the Chief Minister in Thiruvananthapuram recently, he also asked the Hindalco management to submit a viable proposal, including setting up of captive power plants, based on their long-term requirement with in a month, Mr K.N. Gopinath, General Convenor, Save Indal Trade Union Samithi, who attended the meeting, told Business Line.

`UNVIABLE'

The company closed the smelter plant on August 1, 2003, following hike in power tariff to Rs 3.29 a unit, citing that the unit could not be operated viably at this rate.

The Hindalco Chief Operating Officer, Mr S. Majumdar, said at the meeting that a viable tariff was essential given the highly fluctuating prices of the metal at the London Metal Exchange and hence the power tariff has to be at Rs 1.62 a unit to break even.

TECH UPGRADATION

Besides, the company will have to upgrade technology by 2010 from the present outdated Sodarberg technology to a new environment-friendly Prebaked technology, which would involve an investment of Rs 100 crore. In addition, Rs 30 crore will have to be invested for setting up modern pollution control facilities, he said. Therefore, the company needs to be supplied with power at an affordable rate, he said.

PANEL FORMED

The Chief Minister also constituted a committee with the Industry Secretary, Mr N. Balakrishnan, as convenor to look into the demands of the company.

The company is said to be paying some meagre wages to 326 laid-off workers. But to make both ends meet, some have taken up jobs outside.

The meeting was attended by the Ministers for Industry, Electricity, Fisheries; Mr K. Chandran Pillai, MP; the Principal Secretary, Industry, Mr John Mathai; the Industry Secretary, Mr N. Balakrishnan; the KSEB Chairman, Mr N. Manoharan; Hindalco Alupuram (Eloor) Unit Vice-President, Dr E.C. Jose; and trade union leaders, Mr Sambasivan, Mr Chandrasekharan and Mr Abdul Karim.

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