The State government has decided not to go ahead with the revival of the Perumbavoor-based Travancore Rayons Limited (TRL), with all its efforts to resuscitate the closed company proving futile.
In an affidavit filed before the Kerala High Court, P.H. Kurian, Principal Secretary, Industries, said that at a high-level meeting held on June 28 this year, it was decided that the company need not be revived. Also, a decision was taken to settle its liabilities to the tune of Rs.7,034.58 lakh towards various banks, financial institutions, and employees’ provident fund and labour dues, he added. The government will provide funds for meeting the liabilities.
In fact, the government intended to take over the land owned by the company and hand it over to KINFRA for establishing an industrial park after obtaining the consent of the High Court. The Kerala State Industrial Development Corporation (KSIDC) had roughly estimated that the assets of the company would come to Rs.22 crore.
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The affidavit said that other than the Rs.7,034.58-lakh liability, the government did not intend to entertain any other claim. “The establishments that wanted money from the company should move the official liquidator at the appropriate time. The government has decided to partially settle the dues utilising the Rs.7034.58 lakh provided for mega infrastructure projects in the financial year 2015-16. However, the amount has not been released, as the Planning and Economic Affairs Department did not approve it,” it added.
Set up in 1946, TRL, which manufactured biodegradable cellulose-based viscose filament yarn and cellulose fibre, started production in 1950 and made profits till 1974. However, constant power cuts and lack of takers for its products had driven the company into the red. Subsequently, it was locked out in 1984.
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HC order
The High Court had ordered the winding up of the company in 2008 following the recommendations of the Board for Industrial and Financial Reconstruction (BIFR). Later, the order was revoked in the wake of the government proposal to revive the company.