Major public sector undertakings in Kochi do not have high expectations from the Union Budget being presented on Wednesday with economic uncertainties from the demonetisation of high-value currency notes in November continuing to linger.
Trade union sources in the Cochin Port Trust said it would be a great gesture if the Budget provided financial assistance for dredging operations, which have been eating into the Port’s revenue. The Port has been in serious financial trouble but has shown signs of recovery of late with improvement in container throughput and the expected commissioning of the expanded BPCL refinery.
The Port incurs expenses to the tune of ₹160 crore in dredging the shipping channel, which is also used by the Indian Navy, Cochin Shipyard as well as the Port, sources pointed out. They also alleged that the Union government was also following the path of augmenting capacity through the Sagar Mala project while more than 30 per cent of the existing capacity remained unutilised.
Fertilizers and Chemicals Travancore Limited (FACT), which continues to be in financial difficulties does not expect any direct benefit. However, sources said reduction in import duty on raw materials could help the company in a big way. FACT imports large quantities of inputs like rock phosphate, phosphoric acid and sulphur.
Employees at the Kochi unit of Hindustan Organic Chemicals Limited (HOCL) have been protesting over the last 160 days. Trade union sources said the employees did not feel that the Budget would come to the company’s aid as the Union government had asked the State government whether it could take over the ailing unit.
The State government has recommended that production should be resumed at the unit with extension of a credit line. Union sources said that at a meeting held in Thiruvananthapuram on Monday, the State government had also promised to take up the issue of extended credit line with the BPCL. The issue of electricity bill arrears from HOCL is also likely to be taken up by the State government with KSEB, sources added.
