The Hindu Business Line : Trayons revival: Ball is in Govt's court, says promoter

Plan for change
Elenjical has already paid Rs 50 lakh to show commitment.
Has also signed up with banks, financial institutions.
Plans to start with cellophane and pulp-making plant operation.
50 parties want to set up cluster of units in the premises.

Kochi May 3 The revival of the sick Travancore Rayons Ltd (TRL) at nearby Perumbavoor now rests on the Government's decision to sign an agreement with the new promoter, Elenjical group of Industries, which has reached a one-time settlement with banks and financial institutions.

"We have arrived at an agreement with the banks and financial institutions to settle all the outstanding dues by paying Rs 5 crore," Mr Joseph Varughese, Managing Director of the group told Business Line.

Besides, discussions with trade unions have also reached its final stages and it would be finalised in the next sitting later this week, he said.

The promoters are ready to go ahead with the revival of the company as per the earlier agreement the Government had entered into with the Coimbatore-based group minus the demand for sales tax concessions and allotment of 300 acres of forestland. These two clauses could be deleted from the agreement, "as we don't need them," he said.

According to Mr Varughese, the Chief Minister had directed the concerned departments to finalise all the issues and sign an agreement within a month and that deadline expired on May 1, he said. Now, it is for the Government to come out with an agreement and "if it comes today, we will start work to revive the company from tomorrow," he said.

When contacted, the Industry Minister's office sources said that there were a couple of issues, albeit minor, that needed to be sorted out. An agreement would be signed with the promoters soon, they said.

Rehab proposal

The promoters have already paid Rs 50 lakh to the Kerala State Industrial Development Corporation (KSIDC) as a token money to show the promoter's commitment to reopen the company, Mr Joseph said.

The promoter will invest Rs 250 crore in three years. They would initially start operations of the plants manufacturing cellophane and pulp. Manufacturing of rayons would be taken up in the second stage, he said.

Besides, a cluster of units would be set up by interested parties in the compound. Applications have been received from 50 interested parties and the units would be in food processing, biotechnology and research in biosciences, Mr Varughese said.

According to him, 400 workers will be employed in the cellophane and pulp units while the rest would be absorbed in the cluster of units.

The State Government has accepted the rehabilitation proposal submitted by the new promoters to revive the unit.

Meanwhile, the Travancore Rayons Trade Unions Coordination Committee has alleged that the bureaucratic delay might prolong the revival of the company further.

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