Communist Party of India (CPI) leader C. Divakaran has demanded that the government give up the move to close down United Electricals and Kerala State Drugs and Pharmaceuticals Ltd. (KSDPL).

Mr. Divakaran said in a statement here on Thursday that the previous Left Democratic Front (LDF) government had issued an order that the Kerala State Medical Services Corporation should procure medicines from the company till 2013.

This had helped the company to improve its performance. It was a sudden decision to stop procurement and this had left the company in the lurch. Same was the case with United Electricals.

The order that the KSEB should buy meters from the company was repealed without any notice and now the company was facing closure.

The UDF government had upset the LDF government policy of public sector undertakings (PSUs) supporting each other and making them profitable.

The government should take steps to avert the closure of the companies, Mr. Divakaran said.