The Hindu : Business : KSEB to buy all meters produced by UEIL

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Wednesday, Nov 15, 2006
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KSEB to buy all meters produced by UEIL

Staff Reporter

Company to sign MoU with Government today

KOLLAM: In a move to help the ailing public sector United Electrical Industries Limited, the Kerala State Electricity Board (KSEB) will purchase all electronic meters to be produced by the company.

The company will sign a memorandum of understanding (MoU) with the State Government and the KSEB in this regard on Wednesday. UEIL, popularly known as meter company, has a capacity to produce 50,000 meters a month.

At a press conference here on Tuesday, UEIL Managing Director R. Suku said the capacity of the company would be increased to one lakh meters a month in January. Under the MoU, the Industries Department will given an undertaking to the company for promoting the sale of its excess meters through export and sale in other States. The meters are likely to be sold to the KSEB for Rs.414 a unit.

The MoU will be signed at the company complex. UEIL Chairman R. Krishnakumar will present the MoU and it will be signed in the presence of Industries Minister Elamaram Karim and Electricity Minister A.K. Balan. Water Resources Minister N.K. Premachandran will place an order for pump starters with the UEIL on the occasion.

Mr. Suku said that though the company had made a profit of Rs.3.38 crore in 2001, it now had a debt of Rs.4.5 crore. . Following this, the company has to divert its working capital to pay salaries. The company then has availed itself of an overdraft of Rs.1.25 crore from a nationalised bank and this has brought in the additional burden of a huge interest. The company has requested the State Government for a financial support of Rs.4 crore and is hopeful that an announcement will be made at Wednesday's function.

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