The proximity of the unit to the Nedumbasserry airport and the proposed Smart City have been found attractive for the promoters
KOCHI: Out of the five groups which had submitted proposals for the revival of Travancore Rayons Limited, Perumbavoor, the government shortlisted two companies, Midland Commercial Engineering LLC, Dubai, and KMC Constructions Limited, Hyderabad, for further consultations. An official team led by the Principal Secretary, Industries, T. Balakrishnan, held talks with the representatives of the two companies a few days ago at Thiruvananthapuram in a bid to assess the capabilities and readiness of the two companies to revive the unit which had remained closed for over seven years.
The prospective promoters wanted to ascertain whether the government wanted to stick on to the manufacture of the same product that was made at the unit. The officials explained the government stand that substantial revival process should be initiated though a 100 per cent revival might not be possible, according to sources associated with the revival process. The government was keen to adhere to the schedule for revival, so as to comply with the High Court order pertaining to the revival. The court had permitted the government to submit proposals before June 30, failing which the company might be subjected to liquidation for payment of dues.
The key issues of paying the outstanding dues and retaining the workforce had come up for particular consideration. The government order issued in 2007 in this connection would be binding on the new promoters, sources said. Accordingly, the dues to workers as well as those pertaining to contributions to Employees State Insurance and Provident Fund should be remitted by the promoter. A one time settlement could be facilitated to settle the dues to banks and financial institutions. Prior permission would have to be obtained by the promoter from the government for starting new industries at the unit.
Though the company has over 70 acres of land, 5 acres would be set apart for installation of a 220 KV substation. There is possibility of starting a cluster of units in the vacant land within the compound, sources said. The proximity of the unit to the Nedumbasserry airport and the proposed Smart City have been found attractive for the promoters.