The Hindu Business Line : TELK expansion in three phases

Thiruvananthapuram June 1 The modernisation and capacity expansion of the state-owned Transformers and Electricals Kerala Ltd (TELK), for which it is entering into a joint venture agreement with National Thermal Power Corporation (NTPC), will be implemented in three phases.

In the first phase, the capacity will be raised to 5,500 MVA from the existing 4,500 MVA. At present, the company is unable to utilise the full capacity due to financial constraints and technological shortcomings, according to the Industries Minister, Mr Elamaram Kareem.

In the second phase, the capacity will be further enhanced to 10,000 MVA and the company will be equipped with mobile transformer repair facility in the third phase. TELK is engaged mainly in the manufacture of power transformers, voltage transformers and circuit breakers.

The Minister said that the projected outlay for the modernisation and expansion programme was Rs 190 crore. Out of this, 65 per cent would be mobilised as loans and the remaining 35 per cent as equity.

Stakeholding

In the proposed joint venture, the State Government will have 51 per cent equity stake and NTPC 44.6 per cent. As of now, Hitachi of Japan and a few individuals have a combined holding of 4.4 per cent in TELK and this will continue as such in the new entity.

The State Government will offload 44.6 per cent in favour of NTPC from the 95.6 per cent equity it now holds in TELK along with companies owned by it. The paid-up capital of the company is Rs. 42 crore.

The chairmanship of the joint venture will be vested with the State Government, while NTPC will have the right to the post of the managing director. The board of directors will comprise 15 members.

Mr Kareem said that the joint venture agreement between the State Government and NTPC would be signed by the middle of June. The State Cabinet had given its approval to the proposal on Thursday.

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