KOCHI: Travancore Cochin Chemicals Limited, a public sector unit at Udyogamandal near here, entered a new phase on Saturday with the inauguration of the third stage of its caustic soda plant and the laying of the foundation for the fourth stage. Laying the foundation, the Chief Minister, Oommen Chandy, promised to extend support for the expansion programme.

Assuring the employees of retaining the unit in the public sector, the Chief Minister said the Government would explore the options for reducing TCCL's loan liability. He mooted employees' participation to meet the capital needs for future expansion.

Mr. Chandy reminded the employees that the modern scenario made it virtually impossible for any industry to survive with the help of government subsidies. He recalled that a practical approach adopted by trade unions and the political leadership had helped the TCCL overcome a crisis. He hailed the initiative taken by the former Industries Minister P.K. Kunhalikutty in this regard.

The Industries Minister, V.K. Ebrahim Kunju, inaugurated the third stage of the plant having a production capacity of 25 tonnes a day. He said a plant with a capacity of 100 tonnes or four plants with 25-tonne capacity would be required in the next four years. This is because of the ongoing expansion at Kerala Metals and Minerals Limited and Hindustan Newsprint Limited, two major clients of the TCCL.

The Managing Director, N.R. Subramaniam, said Rs.22.16 crores was spent on the third stage. The environment-friendly unit was completed in 14 months without overrun in respect of time or cost. He pointed out that the cost of power was a decisive factor in the operation of TCCL. The power charges had gone up from 3 paise to Rs.3.50 a unit since the factory was set up five decades ago. Proposals for mini-hydel projects were not found viable. He urged the Chief Minister to waive the company's loans to facilitate its expansion.

The Principal Secretary to the Government and Chairman of TCCL, John Mathai, in his inaugural address, recalled that the company which was referred to the Board for Industrial and Financial Reconstruction (BIFR) could come out of the red in 2003 with the help of government intervention. The expansion project has increased the feasibility of the company, he said.

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