Travancore Rayons staff welcome government decision

Travancore Rayons Limited

Travancore Rayons Limited  

2,020 employees to benefit from settlement offered by govt

The more than 2,000 employees at Travancore Rayons Limited have welcomed the decision by the State government to finally settle the company’s financial dues and wind up the unit.

The government order, issued last Friday, said it had sanctioned a total of ₹70.34 crore for the final settlement of dues. Of this, ₹36.20 crore will go into the settling of dues with banks and other financial institutions. The remaining portion of the money, ₹34.14 crore, will go into paying off the employees, including their EPF and ESI contributions.

The unit has been shut since 2001, but since then there have been several attempts to revive the unit with the employees seeking a stay on the winding up orders after it was referred to the Board for Industrial and Financial Reconstruction.

The government expects that the High Court will permit the official liquidation of the company once the institutions to which the land has been pledged are paid their dues. The government will take back 65 acres of land on which the unit is located. Out of the total 73 acres, five acres were used to set up a sub-station of the Kerala State Electricity Board.

A total of 2,020 employees and their families will benefit from the settlement. Some of the employees have passed away. There are 545 employees who continue to be on the rolls of the company, said sources in Travancore Rayons Samarkshana Samithi.

The Samithi has welcomed the government move and said it had come at the end of 16 years during which period hopes of revival continued. The State government had also roped in the Kerala State Industrial Development Corporation for settling the company’s dues.

Travancore Rayons Limited, near Perumbavoor, had its glorious days in the industrial history of Kerala as the first maker of cellulose-based viscose filament yarn. The company was, however, locked out in 1984 to be reopened two years later. However, hopes of revival soon faded.

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Printable version | Feb 22, 2020 9:52:13 PM | https://www.thehindu.com/news/cities/Kochi/travancore-rayons-staff-welcome-government-decision/article18960817.ece

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