The long wait for revival of Travancore Rayons Limited in Perumbavoor may end next month with the State Cabinet expected to give its nod for it. The report on the proposed takeover is being examined by the Industries and Finance departments. The government is likely to make a statement on the progress of the takeover procedures in the Assembly on Monday, sources associated with the revival scheme told The Hindu.
Kerala Industrial infrastructure development corporation (Kinfra) has been entrusted with the development of infrastructure to facilitate opening of a new unit as soon as the procedures for takeover are completed. Kinfra had allocated Rs.16 lakh last year for maintenance of the existing building. It is paying about 20 employees who are maintaining the unit now. KSIDC had allocated Rs.40 crore earlier towards payment of dues to the employees.
The unit owes over Rs.200 crore to a consortium of banks and financial institutions, which had financed it upon State government guarantees. A one-time settlement package to clear the dues to banks and financial institutions is also understood to be set for approval by all the concerned, paving the way for the takeover by the government.
Earlier initiatives during the former LDF government to entrust the unit to promoters had failed to take off in the absence of settlement of dues. The LDF government had mooted the idea of issuing an ordinance for takeover, but it also failed to materialise as the Union government advised the State to pass a Bill in the Assembly.
The revival of the unit would actually mean setting up of a new industry as the machinery at the existing unit is outdated. The unit had been making cellulose fibre in its heydays. There is a high probability of setting up an information technology park or IT-enabled services industry now.
The rayons unit had contributed much to the prosperity of the town in the past. Employing over 1,000 workers, the industrial unit had occupied a prime place in the industrial map of Ernakulam. .