The present Left Democratic Front (LDF) government in Kerala assumed office in May 2006. It was the commitment given by the LDF in the election manifesto that the state level public enterprises would be protected, revived and modernised. Having well understood the role of state owned enterprises in the economy of a society, the LDF Government has taken a pro-PSU stand and in the initial period itself outlined a detailed project for revival, development and modernisation of the units. It was necessary to act immediately as the state of the public sector was pathetic under the immediately preceding United Democratic Front (UDF) government led by the Congress Party. They were vehemently implementing the policies consistent to the neo-liberal capitalist plans of the union government.
To put in a nutshell, the policy of the UDF government was “Close down, Privatise and grant VRS to the workers” (VRS stands for voluntary retirement scheme). In order to implement this policy at the official level, an Enterprises Reforms Committee (ERC) was constituted and the report, which throughout has taken an anti-PSU stand, was accepted by the government without any modification. The ERC has neither probed into the reasons of the sickness of the companies nor explored the possibilities of their revival or modernisation.
The ERC Report categorically stated that the PSUs had become a huge liability on the state exchequer and such undertakings should be immediately closed down or privatised. On the basis of the ERC Report, government orders were issued for closure/disinvestments of 25 companies. Hundreds of workers were given voluntary retirement. (But in many cases the dues to the workers so retired were not paid properly and the LDF Government had to take the responsibility of making payments to such workers. There was strong public opinion against the anti-PSU stand of the government and employees of these companies, irrespective of their political affiliation, rallied behind the save-PSUs agitation. The strong protests by the workers and the left parties had prevented the UDF government from selling out the public properties. However, many companies became dormant due to massive VRS and deliberate management inefficiency.
Immediately after assuming the office, an industrial policy was declared wherein an action plan for the revival of PSUs was contained. For the last four years, all out efforts were taken by the industries department to execute this policy and the consistent growth in the public sector is the result of this uncompromising stand. The deliberate actions aiming at the growth and development of PSUs are taken as part of the struggles against neo-liberal capitalist onslaught in which everything public is destined to be perished.
There were 65 PSUs under the industries department of the state government out of which, 17 were closed down for long periods, 5 were welfare corporations and 4 were developmental agencies. 39 companies were directly engaged in manufacturing activities. Out of these 39 companies, one was handed over to Brahmos Aerospace and another one was shifted to the administrative control of excise ministry. In 2009-10, four companies in the electronics sector were merged into one making the latest figure as 34. Sector wise numbers of the companies as on 28/02/2010 are given
in Table I.
Table I
State Level Public Enterprises
Sl.No Category No. of Units
1 Chemical 6
2 Ceramics and Refractories 2
3 Developmental and Infrastructure 3
4 Electrical equipments 4
5 Electronics 3
6 Engineering 6
7 Textiles 7
8 Traditional and Welfare 5
9 Wood and Agro based 1
Total 37
Performance Overview
In 2005-06, i.e. during the last year of UDF rule, majority of the PSUs were making losses. Only 12 out of 44 companies were making profits. These units together made a loss of Rs.69.64 crores. All the nine sectors except the development and infrastructure sector, which is mainly operating in the financial area, were making losses. The loss incurred by all the loss making units during that year was Rs.125.87 crores. Sector wise analysis shows that there was not even a single sector where all the companies had made a profit. In the case of electronics, traditional and textile sectors the situation was pathetic. All the six companies in the electronic sectors were in running in losses and during that year the total loss made by these units was Rs. 45.71 crores. All the eight companies in the textile sector and five out of six companies in the traditional sector were making losses. These are the areas where maximum workers are engaged and indirect employment is highest.
From 2006-07 onwards the situation started changing. In 2006-07 there was a considerable leap both in the case of turnover and profit. The total turnover was Rs. 1763.74 crores against Rs. 1540.40 crores in the previous year and the total profit was Rs. 91.18 crores. The number of profit making companies increased to 24. All the companies in ceramics & refractories, developmental and infrastructure, electrical equipment, and wood & agrobased sectors became profitable. Only three sectors (engineering, textiles and traditional & welfare) made losses. One company in the textiles sector and two companies in the traditional and welfare sector made profits. In 2007-08, the number of profit making units was increased to 27 and the total profit was Rs. 80.30 crores. Although there was an increase in turnover to Rs. 1811.50 crores the profit was reduced from the previous year. This was mainly due to reduction of profits in the chemical and Development & Infrastructure sectors and the increase of losses in the Textiles sector.
In 2008-09, in spite of global economic recession and corresponding shrink in demand, the companies presented extremely impressive results. By this year the number of companies under the industries department was reduced to 41 due to handing over of Kerala Hi-Tech Industries to Brahmos Aerospace Ltd., and by change of administrative department. Out of the 41 companies, 28 companies became profitable. Total turnover was Rs. 2105.01 crores and total profit was Rs. 169.45 crores. There was an increase of 16 percent in the turnover and 111 percent increase in profit compared to previous year. Turnover of seven companies crossed Rs. 100 crores, fourteen companies achieved all time high turnover and six companies achieved all time high profits. All sectors, except textiles and traditional & welfare became profitable. In the traditional and welfare sector, four out of six companies became profitable.
In 2009-10, the number of units has become 37 as four companies of Keltron subsidiaries at Kannur were merged into one and the accounts of HANTEX was not considered as it is the apex body of co-operative societies. Out of the 37 companies, 32 companies became profitable. The total turnover is Rs.2190.73 crores and the total profit is Rs.239.75 crores. Details of the financial performance of the companies are given in Table II.
Table II
DETAILS OF FINANCIAL PERFORMANCE (Rs. In lakhs)
Turnover (without Sl.No. Company Profit /Loss Taxes and duties)
1 The Kerala Minerals and Metals Ltd 51907.00 9010.00
2 Malabar Cements Ltd 16804.08 3105.91
3 Kerala State Industrial Development Corporation Ltd 3279.00 2450.00
4 Transformers and Electricals Kerala Ltd 22088.00 2311.00
5 Travancore Titanium Products Ltd 13659.85 2121.04
6 Kerala State Electronics Development Corporation Ltd 22830.92 1100.33
7 Alleppey Co-operative Spinning Mills 462.44 1014.92
8 Steel and Industrial Forgings 6400.02 910.00
9 Kerala State Industrial Enterprises Ltd 1920.00 660.00
10 Traco Cable Company Ltd 7970.85 546.43
11 Travancore-Cochin Chemicals Ltd 11615.70 218.48
12 Steel Industrials Kerala Ltd 2875.81 211.86
13 Kerala Clays & Ceramic Products Ltd. 675.00 210.60
14 Kerala Electrical & Allied Engineering Company Ltd. 10375.48 139.70
15 Kerala State Bamboo Corporation Ltd. 1497.76 89.00
16 Kerala State Textile Corporation Ltd 4131.30 79.42
17 Steel Complex Ltd 3489.17 76.14
18 Handicrafts Dev Corporation (Kerala) Ltd 1282.63 70.96
19 The Kerala Ceramics Ltd 681.11 62.82
20 The Trichur Co-operative Spinning Mills Ltd 1256.34 50.62
21 Autokast Ltd. 1426.87 37.92
22 Kerala Small Industries Development Corporation Ltd 9307.00 37.00
23 Kerala State Drugs & Pharmaceuticals Ltd 1491.43 26.54
24 Keltron Component Complex Ltd 4827.70 21.33
25 Forest Industries (Travancore) Ltd 797.34 14.99
26 Kerala State Handloom Development Corporation Ltd 1340.00 13.00
27 United Electrical Industries Ltd. 2742.99 12.15
28 The Metal Industries Ltd 245.39 10.41
29 The Travancore Cements Ltd 2805.00 3.00
30 KELPALM 8.82 2.06
31 Kerala Automobiles Ltd 2133.00 2.00
32 Kerala Artisans Development Corporation Ltd 680.39 0.26
33 The Malappuram Co-operative Spinning Mills Ltd. 2132.33 -46.40
34 Sitaram Textiles Ltd 982.44 -72.20
35 The Quilon Co-operative Spinning Mills Ltd 1096.90 -97.87
36 Keltron Electro Ceramics Ltd 511.29 -168.00
37 The Cannannore Co-op.Spinning Mills Ltd 1341.41 -260.33
GRAND TOTAL 219072.76 23975.09
The loss incurred by the five loss making units is Rs. 6.45 crores. Out of these five units four are from textile sector and one from electronic sector. Three units in the textile sector have become profitable in this year and the loss by the other four units is only Rs. 4.77 crores. This sector is in the path of revival. There is an increase of 4.07 percent in turnover and 41.48 percent in profit from the previous year. An amount of Rs. 340.57 crores was remitted to the exchequer as commercial taxes, excise duty and electricity charges. 5850 new appointments were made in this sector during the last four years, out of which 1647 were in 2009-10.
Major Initiatives
When the revival of PSUs was planned in 2006, it was sure that the task was not going to be an easy one. All the important fields like management, financial, technical, marketing, human resource, administrative etc., demanded a new approach. It was important to develop a result oriented action plan and to execute it in a time bound manner. In order to prepare such an action plan, lot of deliberations were held with experts in the relevant fields. Dialogues were initiated with various government departments, PSUs under other administrative departments, banks, similar units under central government, media etc. Trade union leaders were specially invited and interactions with them were held for identifying the crucial problems in this sector and for gathering inputs for solving them. On the basis of these deliberations an action plan for the growth and development of PSUs was prepared. A road map with specific milestones was developed and clear targets were fixed for the implementing agencies. Systems were established for meticulous monitoring and follow up actions. Some of the important steps taken for revamping of the PSUs are given below.
a. Reorganising the Management
The weakest part of the PSUs was the totally unprofessional and unaccountable management. Appointments of chief executives in these organisations were mainly on political considerations and their management expertise was never considered. Nepotism and corruption were rampant in such appointments. We were very sure that unless this issue is addressed all the other steps to revive and modernise the PSUs will not be fruitful since they are the people to implement the policies of government. But there were serious constraints in getting capable and people who with considerable expertise for such posts. Lack of credibility, fear of excessive interference, scarce potential for growth and unattractive remunerations were some of the issues. In the case of second line management also there were severe gaps. The majority of experienced and efficient people in these units deserted the PSUs due to the massive VRS implemented during the UDF rule. The skill and ability of the left out lot was terribly low. There were two important issues before the government: (a) attract management experts at the senior level and (b) improve the skills of the existing officers.
In order to get experts at the top level the appointment system itself was changed. A selection board was constituted for this purpose and appointments were made through open advertisement and interview. Search committees were also constituted to identify experts of various sectors and some good and efficient people were selected through this way also. For providing suitable remuneration to the chief executives thus appointed, the companies were categorised into four and the salaries were enhanced to a very attractive level. The current salary range of the chief executive officers (CEOs) varies from Rs. 60000 to Rs. 1.25 lakhs per month in additions to other perks and facilities available to them.
Appointments are made on a continuous basis. For capacity building of second line management, training programmes are being implemented. Under the aegis of Revitalisation and Internal Audit Board (RIAB), an annual training calendar is prepared and the officers are given training with the help of outside subject experts. State Level Training Programmes were arranged on topics like “Best Practices in Industries”, “Leadership Development”, “Financial Analysis and Project Appraisal” etc. These training programmes were in addition to the shop level on job training and other company wise capacity building sessions.
b. Settlement of Dues to the Banks and Financial Institutions
Many PSUs owed short term and long term loans from banks and other financial institutions, the pay back of which was not timely and proper which resulted in huge arrears and strained relations with the lenders. Consequently, these agencies withdrew from financing the PSUs and their operations were adversely affected. Moreover, the debts were mounting and the balance sheet positions of many companies were becoming bad. In some units, the modernization packages could not be implemented due to scant resources.
In 2006-07 the dues to banks by seven companies were too high and their financial operations were badly affected. Total amount to be paid by these companies was Rs. 359.66 crores. The government has taken special steps to settle this issue once for all. High-level discussions were held and the dues of Rs. 359.66 crores were settled for Rs. 89.39 crores payable at equal instalments. With budgetary support, seven major defaulting companies settled their dues fully. By 2010-11, all long pending dues to the banks and other financial institutions would be settled. The one time settlement has brought a big change in the financial positions of these companies as they could bring their balance sheets to a clean slate and managed to restart operations with the banks.
c. Periodical Monitoring of Performance
For the last four years, monthly review of performances of the PSUs is being conducted every month. The minister, secretaries, chairman and secretary of RIAB have attended these reviews. The monthly review has proved to be an effective tool for improving the performances of the companies. The details of performance of these units for a month are collected by RIAB by the 10th of the following month and the same is analysed by them and the report is presented in the review meeting. Detailed analysis of the performance is done in the meeting focussing on the implementation of the decisions in the previous meetings, achievement of production vis-a-vis target, financial position, implementation of modernisation /development projects, if any, etc. Decisions taken are furnished to them by the end of the meeting itself. RIAB makes a meticulous follow up and offers assistance for the execution of the decisions.
d. Annual Budgeting
There was no proper budgeting system for the PSUs although they were statutorily and technically bound to make one for each year. Operations were planned more or less on an ad hoc basis or as a matter of expediency. This practice was to be dispensed with if they had to organise and streamline their production. 2007-08 onwards, a correct practice of presenting the budget in advance was implemented. In the month of February itself the companies were directed to submit their budget in prescribed format and the same was evaluated by RIAB and discrepancies, if any, were pointed out. On the basis of suggestions made by RIAB the companies were able to prepare a realistic budget and fix quarterly and monthly targets. The Annual Budget meets are organised in March in which the companies present their final budget. These exercises have helped the companies to streamline their operations and strengthen their internal systems to ensure that the production is carried on as per the budget.
e. Auditing of Accounts
It was a matter of serious concern that there were huge arrears of auditing of accounts in the PSUs. Some companies had not audited their accounts for more than ten years. There existed no financial planning and the figures reported were not factually correct. The internal auditors in many companies had not brought out the real issues and at least in some companies they were giving tacit consent to the wrong practices of the management. To address these issues Government prepared a panel of chartered accountants and directed the companies to appoint internal auditors only from this panel with a direction to change them after three years. A fast track system was adopted to complete the pending audits. This has proven very effective. In almost all operating units the internal audits are up to date and statutory audits are pending in some companies mainly due to procedural problems.
f. Mutual Support and cooperation
The government initiated special steps to harness the synergy of PSUs and to organise their operations on terms of mutual benefits. Since many companies are operating in similar fields, combined sourcing of raw materials, providing technical support and avoiding competition between the companies could be achieved. Financial assistance is being provided by well off companies to those, which are in need of money. Preferences were always given to other PSUs in case of sale/purchases of products and services. Support from the government departments also was ensured. The health department has earmarked around 35 medicines to be purchased exclusively from Kerala State Drugs and Pharmaceuticals Ltd. Kerala State Electricity Board has placed orders worth crores of rupees to United Electrical Industries Ltd., Tracco Cable Company Ltd., Kerala State Electricals and Allied Engineering company Ltd., and Steel Industrials Kerala Ltd. In 2006-07 a PSU conclave was conducted at Ernakulam wherein the idea of mutual support between PSUs under all the departments and Central PSUs was mooted which was well received. Memorandums of Understanding for business tie-ups were signed between the companies and their government customers. These steps maintained a continuous supply chain and ensured markets.
g. Budgetary Support
The ministry of finance has extended a very strong supporting hand for the rejuvenation of the PSUs. It has taken a very supportive stand and had made financial provisions in each year’s budget. During the last four years there was a budgetary support of Rs. 210.81 crores for the rejuvenation and modernisation of PSUs. Utilisation of this amount is given in Table III.
Table III
UTILISATION OF BUDGETARY SUPPORT (Rs. in crores)
Sl. | Particulars | 2006-07 | 2007-08 | 2008-09 | 2009-10 | Total No |
1 | OTS with banks/ FIs | 11.18 | 28.39 | 20.88 | 17.71 | 78.16 |
2 | Settlement of balance VRS | 14.30 | 9.59 | 5.91 | 1.58 | 31.38 |
3 | Modernisation /revival | 12.73 | 5.93 | 24.53 | 19.56 | 62.75 |
4 | Working Capital | 14.80 | 4.62 | 8.12 | 10.98 | 38.52 |
Total | 53.01 | 48.53 | 59.44 | 49.83 | 210.8 | |
In the budget for 2010-11, Rs.54.80 crores has been earmarked for the
rejuvenation and modernisation of PSUs.
h. Best PSU /CEO Awards
From 2006-07 onwards, awards are given to exemplary performing CEOs. They are selected by an award committee under the chairmanship of the principal secretary, industries department. The PSU that is taking notable steps to reduce pollution and reduce persons who have made contributions in industrial reporting is also awarded.
i. Strategic tie-ups with Central PSUs/Government
It was an innovative idea of the government to associate with Central PSUs for the revival and modernisation of state enterprises for technology up-gradation and better professional management of these companies. The state government has a limitation on investing huge amounts in new projects for modernisation and technology up-gradation. We could overcome this by tying up with central PSUs that could provide synergy. Four companies have so far been put forward to go for tie up with central PSUs or central government agencies. They are TELK-NTPC, SCL-SAIL, KEL-BHEL, and SILK-AUTOKAST-RAILWAYS. KELTEC, a company primarily doing machine work was taken over by M/s Brahmos in 2007.
TELK, a power transformer company entered into strategic tie-up with NTPC and 44.6 percent of government share in the company was transferred to NTPC in June 2009 and the new Board of Directors by including representatives of NTPC has been constituted. The joint venture is heading for massive expansion and the business plan is ready where, in the first phase, the company hopes to achieve the full manufacturing capacity of 4,500 MVA. With this 10-12 high capacity EHV Transformers can now be manufactured and 2-3 Transformers can be repaired per year. In the second phase increase transformer m a n uf a c tu ri ng capacity of 10,000 MVA including 1,500 MVA of service capability. Keeping this in view, a total number of 20 high capacity transformers can be manufactured and 6-7 transformers can be repaired per year. The previous government had decided to privatise TELK.
The government has signed a joint venture agreement with Indian Railways to start a rail bogie manufacturing company using the facilities of Steel Fabrication Unit and Autokast Ltd. The new company, named as “Kerala Rail Components Ltd.”, will have equity holding pattern of 51 percent and 49 percent to Indian Railways and government of Kerala respectively. The approved share capital and paid up share capital of the new company will be Rs. 100 crores and Rs. 36 crores respectively. Within three years after the formation of the new company, the assets and the employees of Autokast Ltd., will be absorbed in phased manner. When assets of Autokast are transferred to the company, the Indian Railways will make proportionate investments a s we ll. However, there is an inordinate delay from the ministry of Railways in implementing this project.
An Agreement has been signed between Steel Complex Ltd., and SAIL to form a joint venture and the steps are being taken to complete the statutory formalities by November 09. The project report for commissioning a re-rolling mill of 60000 Ton annual capacity is being prepared by SET Ranchi. SAIL and the government of Kerala will have 50 percent share each in the proposed joint venture. SAIL has already provided financial assistance to SCL for streamlining the production. The joint venture will be for manufacturing steel bars and special steel billets.
A business collaboration agreement was signed between Kerala Electricals and Allied Engineering Company (KEL) and BHEL for setting up a joint venture at Kasaragod using the facilities of KEL unit there. The assets of KEL Kasaragod will be transferred to the proposed joint venture as shares of KEL and BHEL will be invested proportionately. The valuation of the property is to be done jointly and the steps are being taken for that. The technical team is identifying the products that can be manufactured in the Joint Venture. A c ore c ommittee with members from the Govt. of Kerala and BHEL has been constituted and that committee is following it up. It is expected that the joint venture can be formed in this year.
In addition to the above, business relations are being developed by Keltron with Indian defence, BEL, ECIL and ISRO. Steel Industries Fabrication Ltd. has long standing tie-ups with ISRO. The government is looking for more strategic tie-ups with the central government and central PSUs.
j. Merger and Amalgamation
A proposal to merge companies of similar line of production and to harness the synergy is under serious consideration. This will reduce the overhead expenses; improve cooperation in sectors of technology, manpower, marketing and finance. Moreover, a bigger organisation will be more capable to meet the challenges of markets. Initially it can be by way of acquisition / transfer of shares. This is a time consuming process as a lot of procedural formalities are involved. Moreover, this process can be initiated only with the consensus among trade unions. However, the government has already taken steps to merge the following companies and appropriate orders have been issued. The Kerala State Industrial Products Trading Corporation is merging with Travancore Titanium Products Ltd. Accounts of both the companies for the year 2008-09 are getting finalised and the merger can be completed by the end of the current year. The Sitaram Textile Mills and Trivandrum Spinning Mills are being merged with Kerala State Textile Corporation Ltd. Four subsidiaries of Kerala State Electronics Development Corporation Ltd., at Kannur viz., Keltron Component Complex Ltd., Keltron Magnetics Ltd., Keltron Crystals Ltd., and Keltron Resistors Ltd., are being merged as a single company.
There are plans to amalgamate electrical and chemical Companies. Similarly, there are plans to transfer part of the government shares in certain PSUs to other PSUs. The modalities are being worked out.
k. Re-opening of Closed Units and Regaining of assets
When the present LDF Government came to power in 2006 May, 17 units had remained closed for a very long time. Some were ordered to be liquidated by the BIFR. Government prepared a plan to regain the assets of these companies, which were under liquidation, and to make use of such assets for industrial purposes. Trivandrum Spinning Mills, that was handed over to the official liquidator was released through the High Court and the same was transferred to the Kerala State Textile Corporation Ltd., to start as an open-end spinning mill. Modern machinery w a s installed there and full commercial production have commenced. Kerala Soaps and Oils Ltd., (KSO) a premier unit in manufacturing soaps, detergents and edible oils was closed down during the period of previous UDF Government. A soap manufacturing unit is set up in the premises of KSO by Kerala State Industrial Enterprises Ltd., at a cost of Rs. 7.05 crores. This unit started the functioning from January 1, 2010. The land of Keltron Counters Ltd., another company under liquidation was utilised for starting Gulati Institute of Finance and Taxation. Keltron Power Devices Ltd., and Keltron Rectifiers Ltd., are also under liquidation. Steps are initiated to release the property of these companies and the petitions for the same are under consideration of the High Court.
l. Fresh Recruitment
The majority of companies are facing acute shortage of qualified executives and workmen owing to the massive VRS during the previous UDF rule and lack of proper succession planning. During the last four years, above 5000 fresh appointments were done in the companies. The majority of companies have prepared their human resource plans and are going in for recruitments.
m.Wage Revision
Wage revision was implemented in almost all the companies and in some companies discussions are going on. Average increase of 25 to 35 percent of the salary was given to the workers and officers. KMML, Keltron, KEL, Kerala Ceramics Ltd., SILK, Kerala Clays and Ceramics Products Ltd., and Steel Complex Ltd., were some of the major companies where the wage revision was implemented during 2009-10.
National Conference on State Owned Enterprises
A major event in 2009-10 was the National Conference on “Resurgence of State Owned Enterprises: The Kerala Experience” that was held in New Delhi on 16/11/2009 to highlight the achievements of Kerala PSUs before the political leadership, prominent academics and senior bureaucrats at national level. It was also intended to initiate a dialogue on the role of the State Owned Enterprises in the context of global economic recession. The conference was inaugurated by Prof. Prabhat Patnaik, renowned economist and Vice Chairman of the State Planning Board. A galaxy of prominent personalities attended the meeting and the deliberations were of very high standard. Com. Mohammed Amin, General Secretary of CITU, Prof. Amiya Kumar Bagchi, Director, Institute of Development Studies, Prof. P.J. Kurien, MP, Dr. Y.R.K. Reddy, Academy of Corporate Governance, Nitish Sengupta, Chairman, BRPSE, Trilok Singh Papola, Development Economist, Abani Roy, MP, Com. Sukumol Sen, General Secretary, All India Government Employees Federation, T.K.A. Nair, Principal Secretary to the Prime Minister, K. M. Chandrasekhar, Union Cabinet Secretary, and Abhijit Sen, Member, Planning Commission attended the meeting. Many other prominent political / trade union leaders, academicians, CEOs of Central PSUs and media persons were also present. The minister for industries, Shri. Elamaram Kareem presided over the function and the Principal Secretary (Ind) Shri. T. Balakrishnan made the presentation on the Kerala achievements. The participants appreciated the steps taken by the Government of Kerala to revive the PSUs and there was unanimity on the point that such initiatives should be followed by other state governments and also by the Union Government. The central theme of the conference was well received especially in the background of the Union Government’s decision to privatise up to 49 percent of shares of the central PSUs. There was wide media coverage and some national magazines published special articles on the conference.
Similar conferences were held in Trivandrum and Ernakulam. It is planned to conduct the conference at Kozhikode on 14/05/10. The conferences could highlight the importance of PSUs in the productive sector and the political commitment of the LDF Government in protecting and developing them.
Expansion, Modernisation and New Projects
In the budget for 2010-11, Rs. 54.80 crores is allotted for the development and modernisation of the PSUs. During this year it is planned to implement expansion programmes to the tune of Rs. 275 crores in the following companies.
a. KMML - Modernisation of the plant. (Rs. 100 cr)
b. Autokast - Steel Casting Line in (Rs. 10 cr)
c. KSDP - Total renovation and new production line (Rs. 34 cr)
d. Trivandrum Spinning Mill - Doubling the capacity (Rs. 5 cr)
e. Kerala Soaps – New production Unit (Rs. 5 cr)
f. TTPL – Modernisation (Rs. 25 cr)
g. TCCL – Modernisation of the plant (Rs. 51 cr)
h. Malabar Spinning and Weaving Mill –Doubling the capacity (Rs.15 cr)
i. KEL – Modernisation and new product lines (Rs. 30 crores)
In addition to the above, the following eight more units are going to be started in this year. The proposed budget is given in the bracket.
1. Komalapuram High Tech Spinning and Weaving Mills (Rs.36 cr)
2. High tech weaving mill at Kannur (Rs. 20 cr)
3. New Textile Mill at Kasaragod (Rs. 16 cr)
4. Tracco Cable Unit at Kannur (Rs. 12 cr)
5. Tool Room of SIDCO at Kozhikode (Rs. 12 cr)
6. Machining Unit of SIFL at Shornur (Rs. 12 cr)
7. United Electicals Industries new Unit at Palakkad (Rs. 5 cr)
8. Tool Room and Training Centre of Keltron at Kuttipuram
(Rs. 12cr)
For implementing the above projects, the surplus funds of the PSUs will be utilised. It is proposed to collect Rs. 100 crores from KMML and Malabar Cements Ltd. Some of the projects will be funded by the
Kerala State Industrial Development Corporation, banks and other financial institutions.
- K. GOPA KUMAR
