The Hindu Business Line : NTPC may pick up stake in TELK

SBICaps is currently doing an evaluation of TELK's assets and other financial aspects for the purpose and understanding has already been reached with NTPC on several areas, according to the Industries Minister, Mr Elamaram Kareem.

Funds Requirement

TELK is engaged in the manufacture of high-capacity transformers. But its technology and equipment have become outdated and need immediate upgradation.

Also, the company has totted up accumulated losses over the years though it has been making operating profits during last three or four years. The Minister said TELK would require funds to the tune of around Rs 150 crore to upgrade itself and this was proposed to be met by NTPC by way of equity and loans.

Mr Kareem said that the Kerala State Electricity Board was set to sign an agreement with the United Electrical Industries Ltd, another State PSU, for purchase of electric meters on `rate contract' basis. It was also proposed to enhance the capacity of United Electrical to six lakh meters a year.

The Industries Department has identified 10 PSUs for purpose of one-time settlement of their liabilities in the current year. This would involve outgo of between Rs 150 crore and Rs 200 crore.

The Government is planning to settle the liabilities in instalments and the banks have agreed to the proposal. This would entail about Rs 20 crore this year and this would be met from the Rs 40 crore set aside in the budget for rehabilitation of PSUs.

Mr Kareem said that the Government had initiated measures to rejuvenate the small-scale sector in the State.

A task force headed by the Chief Minister had met recently and taken decisions on several issues to help the sector. There were arrears to the tune of Rs 23. 30 crore as principal and Rs 31.34 crore as interest on loans that were given 10 years ago.

Single Window Clearance

The Government has also decided to restore the price preference scheme to the SSIs operating in the State on purchases made by the various departments of the Government. The scheme was in operation till 2005.

The Government is also making efforts to remove the procedural bottlenecks for registration of SSIs in the State. A committee had gone into these issues and submitted a report.

The recommendations found acceptable would be codified, the Minister said. One of the suggestions was to amend the Single Window Clearance Act to simplify the procedures for registration of units, he added.

The Minister also announced State-level and district-level awards for best performing SSI units under various categories.

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