The Hindu Business Line : `Coach factory has brightened prospects for more such deals'

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Thiruvananthapuram Feb. 27 The Railways' decision for establishing a coach manufacturing unit, jointly with Steel Industrials Kerala Ltd (SILK), has brightened the prospects of similar tie-ups between State public sector undertakings and Central establishments, according to the Industries Minister, Mr Elamaram Kareem.

The Kerala Government has proposed linkages with Central establishments for a few other State PSUs such as Kerala State Electronics Development Corporation (Keltron), Kerala Hitech Industries (Keltec), Steel Complex Ltd and Transformers and Electricals Kerala Ltd (TELK).

The coach manufacturing line is proposed to be set up at Autokast Ltd, a subsidiary of SILK, at Cherthala in Alappuzha district. The adjoining land belonging to the Steel Fabrication Unit of SILK will also be utilised for the purpose.

The Minister said that the unit would initially take up manufacturing of lightweight fabricated bogies at an investment of Rs 85 crore. This would be developed into a full-fledged coach factory later, for which the Railways had expressed willingness to make further investments.

The land and other fixed assets of Autokast and Steel Fabrication Unit will form the State Government's equity contribution to the joint venture. The valuation work for the purpose had been completed and was at the approval stage, the Minister said.

The Government is making efforts to revitalise SILK as a whole and the tie-up with the Railways is part of it. It has already decided to revive the ship-breaking unit of SILK at Beypore, which is lying idle, and the foundry unit at Ottapalam. Besides, the Kerala State Electricity Board has entrusted SILK with the implementation of two small hydel projects in the State.

Explaining the status of the other proposals for linkages with Central establishments, the Minister said that a decision would be taken on a joint venture between TELK and the National Thermal Power Corporation (NTPC) within a week.

The State Government has held discussions with the Defence Minister, Mr A.K. Antony, for expanding the cooperation between the Defence Ministry and Steel Industrial Forgings Ltd (SIFL). The unit would be expanded at a cost of about Rs 14 crore initially and the Government was considering a major project, costing around Rs 500 crore, in the second phase, Mr Kareem said.

The Government has also taken up with the Defence Ministry the need for strengthening the latter's production deals with Keltron and Keltec. Officials from the Ministry had already visited the Keltec unit and Mr Antony is scheduled to visit the facility some time next month, the Minister said.