The Hindu Business Line : Keltec to be handed over to BrahMos

Thiruvananthapuram, Nov. 4 The Kerala Government will sign a deed document handing over the State-owned Kerala Hightech Industries Ltd (Keltec) to BrahMos Aerospace under the Defence Ministry here on December 5.

BrahMos is a joint venture of the Union Government and the Russian Government for manufacture of cruise missiles in which the former holds the majority stake through the Defence Research and Development Organisation (DRDO). On takeover, Keltec will be renamed as BrahMos Aerospace (Trivandrum) Ltd.

BrahMos cruise missiles, with a speed of 2.8 mach, will be manufactured at the modern facility created at Keltec. Apart from missile production, BrahMos also plans to develop new generation launch vehicles for the space applications of the Indian Space Research Organisation (ISRO) and continue to supply all critical components for DRDO and Bhaba Atomic Research Centre (BARC), according to officials in the State Industries Department.

To begin with, BrahMos will make an immediate investment of Rs 100 crore, while ISRO will pump in Rs 25 crore for enhancing the facilities at Keltec.

BrahMos is also in the process of acquiring the land adjacent to Keltec, belonging to another agency of the Defence Department, for expanding the operations of its new unit.

The projected annual turnover is Rs 500 crore within the first three years, which is expected to go up to Rs 1,000 crore within a span of five years. The Trivandrum facility is the second full-fledged production and integration centre of BrahMos Aerospace.

The officials said that titanium and its alloys being the major inputs, the BrahMos unit would ensure a long-term market for the proposed titanium sponge company in the State. Besides, it will be a potential anchor industry capable of providing a host of opportunities to the small and medium industrial sectors of Kerala.

As part of the takeover scheme, all the employees of Keltec be will absorbed by BrahMos Aerospace and the retirement age will be raised from 58 to 60.

The employees will be paid at par with Hindustan Aeronautics Ltd (HAL), which is a Class-A Central public sector undertaking.

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