KOCHI: The much-awaited settlement of dues to facilitate the reopening of the Travancore Rayons remains an unresolved issue. There were high expectations on solving the issue after the new government assumed power in the State. But no progress has yet been made for reopening the unit.

More than 1,000 employees are the worst affected by the indefinite delay in settling the issues. One of the employees, an engineer, had approached the court to get his terminal benefits due from the company. The court ordered the company to pay his dues. The company, in turn, wanted to sell two of its buses, but the auction held last week was unsuccessful as the quoted prices were much below expectations.

The one-time settlement mechanism to clear the dues to the lending consortium of banks and financial institutions is yet to be thrashed out. An understanding pertaining to the one-time settlement was reached with the IDBI, major financing body in the consortium last year.

The other banks were expected to follow suit, but a final word is yet to emerge from the other banks. This, in effect, is delaying the revival process.

The Coimbatore-based NDEE Group had signed a memorandum of understanding a year ago for takeover of the unit. The group is planning to invest about Rs.550 crores initially, but the dues have to be cleared prior to the takeover.

The trade unions in the company had formed a coordination committee to facilitate speedy revival of the company. But their efforts had not borne fruit in the absence of the one-time settlement.

The State Government has promised interest-free deferment of electricity charges for three years from the date of commencement of operations. The lease of the existing factory land of about 73 acres will be extended. There will be interest-free deferment of sales tax dues for eight years, as per the understanding reached between the company and the Government. But the one-time settlement is the crucial issue that begs for an answer.

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