The Hindu Business Line : Kerala Govt finds new promoter for revival of Trayons

The LDF Government, in a bid to revive Travancore Rayons Ltd (Trayons), which has been sick for four years now, has found a new possible promoter in the Elenjical Group of Industries that has come forward with a proposal to rehabilitate the company.

A meeting on October 25 to discuss the proposal, presided over by the Industries Minister, Mr Elamaram Karim, and attended by the Fisheries Minister, Mr S. Sarma, MLAs and trade union leaders, entrusted the Industries Department Special Secretary, Mr P.H. Kurien, to go ahead with the revival of the company.

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Besides, Mr K. Chandran Pillai, MP, the UDF Convenor, Mr P.P. Thankachan, and Mr Saju Paul, MLA, will hold discussions with the promoter, Mr Joseph Varughese, on November 3 to finalise an agreement with the trade unions, said Mr P.V. Sukumaran, Joint Convenor, Travancore Rayons Samrakshana Samithi.

A decision to drop the proposal from the previous promoter, the Coimbatore-based NDEE Group, was taken at a meeting held by the Industries Minister on October 17, he said. However, details of the new revival package are yet to be made available, he added.

The company's revival by the previous promoter was stalled by the alleged non-cooperative attitude of a consortium of banks led by Indian Bank, according to Mr Damodaran, Managing Director of the NDEE Group.

The previous Government had signed an agreement with the promoters long ago for reviving the company.

As per the agreement signed between both the parties, the promoters would take over all loan liabilities, including those taken by the company under Government guarantee, and would be settled through one-time settlement.

Similarly, all dues to the State Government and Government agencies would be settled.

Government concessions and benefits would include permission to pay electricity charges and sales tax in instalments and assistance and co-operation for setting up of new hydroelectric projects, according to official sources.

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

In the first year the promoter would invest Rs 60 crore for renovation of the existing plant. All old machinery would be phased out in three years.

The BIFR had ordered closure of the unit in 2002. It was at this juncture that the NDEE group had come forward with a revival package. As it had been under the consideration of the State Government, the Kerala High Court had stayed the closure of the unit.

However, sources told Business Line that the appointment of a new promoter was possible only after cancelling the agreement between the previous Government and the NDEE Group.

Some 1,200 workers have gone without wages for four years now. The unit is currently being maintained by a skeletal staff of 70 people on monthly wages of Rs 500, trade union sources said.

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