KERALA

Merger of PSUs on the cards: Karim

joint venture: Industries Minister Elamaram Karim inaugurating the operation of a joint venture between the Angamaly-based Transformers and Electricals Kerala Ltd. and NTPC Ltd. in Kochi on Tuesday. —   | Photo Credit: Photo: Vipinchandran

Staff Reporter

Minister says the move will step up efficiency and reap maximum profits

KOCHI: Industries Minister Elamaram Karim has said that the government has plans to merge public sector units in the State having like-minded character.

In his inaugural address at the commencement of the operation of a joint venture between the Angamaly-based Transformers and Electricals Kerala Ltd. (TELK) and NTPC Ltd. (formerly National Thermal Power Corporation) here on Tuesday, Mr. Karim said that the aim of such a move was to step up efficiency and reap maximum profit from these companies.

Pointing out that the like-minded units would be brought under one umbrella, the Minister said that the merger would help the companies tap the market jointly. “They can also strengthen sales of products by pooling in resources,” he said.

Explaining that the government wanted to convert all public sector units in the State into profitable ventures, Mr. Karim said that the joint venture between the State and Central public sector units had yielded tremendous results over the last two years.

Referring to the joint venture between the BrahMos Aerospace Corporation and Kerala Hi-tech Industries Ltd., the Minister said that BrahMos had invested Rs.75 crore in the first year of operation.

The profits of Kerala Hi-tech Industries went up by three times following the join venture. “BrahMos has now asked for 50 acres to make investments worth Rs.1,000 crore. The government had already initiated steps to procure the land,” he said.

Praising Union Defence Minister A.K. Antony for his support in setting up joint ventures between the State and Central public sector units in the State, Mr. Karim said that Mr. Antony had taken certain key decisions to step up investment in the State.

The Minister said that the investment climate in the State had undergone considerable change after the Left Democratic Front came to power.

Mr. Karim made it clear that the government would not use force to remove families while acquiring land for development projects. He said that the Industries Department wanted to provide land near to the project site for those who give up their dwellings for development projects.