The Hindu Business Line : Trayons revival hits roadblock

Kochi, Dec. 25 The revival of Travancore Rayons Ltd (TRL) at nearby Perumbavoor, which remains closed for over seven years, appears unlikely, probably for want of a political will.

Even several months after the Kerala State Cabinet has approved the revival package put forward by the Kochi-based Elenjical Group and issuance of government orders, no agreement has been signed between the two parties.

The reason for the government going cold is said to be the allegations raised by a Malayalam language daily about the proposal.

The promoters, Elenjical Group, have now urged the government to come out with a statement that the entire process of selection of the promoter has been transparent.

It took almost a year for the government to study the revival package, with the State Cabinet eventually clearing the proposal, Mr Joseph Varghese, Managing Director of the group told Business Line.

The government, following allegations in the daily that the “deal was not transparent” and that “the black hands of land mafia” were at work and so on, appears to have gone back on its decision to reopen the unit, he said.

Promoter’s appeal

Now, the promoter has appealed to the government to advertise in the newspapers calling for prospective promoters to revive the TRL and “if anybody comes forward with an offer better than that of ours, they can be entrusted with the task of reviving the unit,” he said.

Also, the government could consider handing over of the TRL to Kerala State Infrastructure Development Corporation, Kerala State Industrial Development Corporation and INKEL based on the suggestions made by the Secretaries of various departments, he said.

In fact, the promoters already entered into an agreement with the trade unions as well as with the banks and financial institutions for a one-time settlement. Probably for the first time, all the trade unions affiliated to different political parties came together to support the promoter.

It is understood that political bickering among the Left Democratic Front partners apart from the cold war between the ruling and opposition leaders, of late, is coming in the way of the revival of the unit. It is a clear manifestation of how politics supersedes the interest of around 1,200 workers and the State.

Minister’s statement

Earlier, refuting allegations, the Industry Minister, Mr Elamaram Kareem, had said that the unit would be given on lease to the promoters whose revival package was accepted by the State Cabinet and accordingly a government order had been issued.

When contacted, official sources told Business Line that “certain minor issues have to be sorted out and it would be over soon.” They were, however, not ready to spell out what these minor issues are.

According to Mr Joseph Varughese, as per the company’s revival package it would have invested Rs 250 crore in the company in three years.

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