The Hindu Business Line : NTPC, SAIL, Rlys to invest in Kerala PSUs

The State Government intends to keep 51 per cent stake in TELK, while the rest would be given to NTPC as its investment in modernisation and expansion of the unit.

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Kochi Feb. 18 NTPC, SAIL and the Indian Railways are in the process of joining hands with three Kerala State public sector units for their expansion and modernisation on a buyback arrangement.

The State Industries Minister, Mr Elamaram Kareem, told Business Line that negotiations with NTPC was at an advanced stage on its equity participation in the Transformers and Electricals Kerala Ltd (TELK).

The Minister said that he had discussions with the Chairmen of NTPC and SAIL during his recent visit to New Delhi. They had shown interest in equity participation in the State PSUs operating in the respective areas.

The State Government intends to keep 51 per cent stake in TELK, while the rest would be given to NTPC as its investment in modernisation and expansion of the unit.

Valuation

He said that SBI Caps had already done the asset and machinery valuation.

If the modernisation cost exceeded the 49 per cent equity value, additional funds required could be pumped in as an interest-free loan by NTPC, he said.

Mr Kareem said that NTPC was interested in building a mobile repairing unit in TELK, which could carry out repair works of the transformers in its power plants.

Breakdown of transformers was costing NTPC around Rs 3.5 crore daily and hence such a facility could result in substantial savings. TELK manufactures high-rated transformers of 1MB and above and has the technical expertise, he said.

SAIL'S ROLE

Similarly, SAIL has shown interest in participating in the equity of the State-owned Steel Complex Ltd in Kozhikode. A SAIL team has visited the plant and a feasibility report is being prepared. The Government is interested in having the presence of SAIL in the State where it could expand its operations, given the iron ore deposits here, the Minister said.

Another unit, which would have Central participation, is the Autokast Ltd at Chertalai in Alappuzha district, in which the Indian Railways has shown interest following discussions with the Union Railway Minister, Mr Lalu Prasad, by the Chief Minister, Mr V.S. Achuthanandan, and the State Finance Minister, Dr Thomas Isaac, recently.

As freight traffic is on the increase and the Indian Railways is on the lookout for lightweight wagons made of cast steel frame, Autokast has been identified as a suitable partner in its manufacture and supply. RITES had already completed the asset valuation and a "due diligence team" was expected soon, he said.

Details about the amount of investment needed and other modalities would be worked out in due course after completing the studies, he said.