The Hindu Business Line : Decks cleared for Trayons revival

Kochi May 30 The Kerala Government is expected to sign an agreement with the Kochi-based Elenjical Group of Industries within a month for reviving the sick Travancore Rayons Ltd, which is under lay-off for the past over six years, as a high-level committee is understood to have given a positive recommendation, paving the way for Cabinet approval.

The promoters have already reached an agreement with all trade unions at its final meeting held in Aluva on Tuesday. Earlier, the banks and financial institutions concerned had agreed in principle for a one-time settlement with the promoters.

"We have, on our part, removed the two major hurdles that have been blocking the reopening of the company employing around 1,200 workers," Mr Joseph Varghese, Managing Director of the Group, told Business Line on Wednesday.

GOVT NOD NEEDED

Now the State Cabinet has to give its nod for waiving certain liabilities of the company with the State Electricity Board and the sales tax department. The high-level committee headed by Mr T. Balakrishnan, Principal Secretary, Industries Department, is understood to have given a positive recommendation to the Government on these pending issues.

The State Industries Minister, Mr Elamaram Kareem, told Business Line earlier that the Government might have to write off some of these dues and, hence, a decision of the Cabinet might be necessary. Since the Government is for the re-opening of this sick unit a positive decision including signing of the agreement can be expected soon, he added.

Mr Joseph said that they were ready to go ahead with the revival of the company as per the earlier agreement that the Government had entered into with the Coimbatore-based group minus the demand for sales tax concessions and the allotment of 300 acres of forestland.

REVIVAL PLANS

According to him, the Chief Minister had directed the concerned departments to finalise all the issues and sign an agreement within a month and that deadline had expired on May 1.

The promoter will invest Rs 250 crore in three years. They will 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 come up in the compound to be set up by interested parties.

Mr Joseph said that within six months after the company started production a long- term agreement for 10 years will be concluded with the trade unions incorporating all the 12 conditions accepted by both the trade unions and the promoters at the meeting on Tuesday.

This agreement would be subjected to review after five years, he said.

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