Kerala

Bogged down by liabilities, Kerala Automobiles Limited to receive a leg-up from Kerala Government

Industries Minister P. Rajeeve told the Assembly on Thursday that the Government was extending all possible assistance to the public sector Kerala Automobiles Limited (KAL) to pull the stricken company out of the red and put it back on the rails.

Replying to a submission moved by K. Ansalan, Mr. Rajeeve said the Government had drawn up plans to transform KAL into a major manufacturer of electric three-wheelers. Outlining the details of the crisis caused by the accumulation of financial liabilities, he said the company had run up huge arrears on the EPF and gratuity payment to employees for years.

The EPF authority had initiated attachment proceedings on the company’s bank and treasury accounts to recover arrears to the tune of ₹5.87 cr. Retiring employees were also not paid gratuity from 2013. The arrears on this count totalled ₹2.9 cr, the Minister told the House.

Mr. Rajeeve said KAL also owed ₹15.96 cr on loan and interest payment to the State Bank of India (SBI) and a private financing company. The Neyyattinkara sub court had initiated attachment proceedings of the company’s property in a case filed by the financier, while the SBI had dragged KAL to the Debt Recovery Tribunal.

Financial aid

The Minister informed the House that the Government had extended financial assistance to the tune of ₹35 cr. over the last five years to help KAL install new machines and manufacture electric three-wheelers. An additional amount of ₹6 cr was provided to the company as assistance to tide over the COVID-induced crisis.

Besides this, an outlay of ₹10 cr was provided in the Budget for the development and production of electric vehicles.

Mr. Rajeeve said the Government had also approved the setting up of a new unit of KAL at Kannur to augment the production at the Thiruvananthapuram-based unit.


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Printable version | Dec 5, 2021 1:53:01 PM | https://www.thehindu.com/news/national/kerala/bogged-down-by-liabilities-kerala-automobiles-limited-to-receive-a-leg-up-from-kerala-government/article36881950.ece

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