The Hindu : Business : More units on the verge of closure in Kanjikode

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Thursday, Nov 02, 2006
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More units on the verge of closure in Kanjikode

Staff Reporter

Chief Minister to discuss revival of six major units

PALAKKAD: The Kanjikode-Pudussery-Walayar industrial belt that was emerging as the second biggest industrial area in the State after Kochi is facing crisis due to the closure of 63 more industrial units. This has rendered more than 3,123 employees jobless.

Major industries that were closed down include 14 ancillary units of BPL employing 250 workers, Madras Spinners employing 389 permanent and 213 temporary employees, Silicol Metallurgical Limited employing 148 permanent and 200 temporary employees, Co-operative Sugars employing 650 employees, Shiva Shakthi employing 40 permanent and 50 temporary workers and seven knitwear companies employing 200 workers.

Some more units are on the verge of closure. A survey conducted by the Indian National Trade Union Congress (INTUC) on the `problems and solution to the crisis in Kanjikode industrial belt' said that in the BPL-Teatex industrial belt, 9 units were closed down rendering 300 permanent and 347 temporary employees jobless.

In the Industrial Development Area of Kanjikode, 18 units including Supreme Textiles employing 112 permanent and 95 temporary employees, Sunmetals and Alloys employing 78 permanent and 36 temporary employees closed shop. Other units include Kamala Engineering Works, Kerala Enamels and Paints, Gurukripa Industries, Sree Ramakrishna Carbide, P.S.R. Industries, Coolmix Mineral Water, Tecktool Private Limited etc.

In the Walayar industrial area, 10 units were close down throwing out 1741 workers.

The Chittur Co-operative Sugars was closed in 2003 rendering 650 employees jobless.

There are a number of reasons for the closure of these units. Some of the power intensive companies like Ferosilica and Carbide units were closed down after enjoying the concessions allowed in the first five years of its operations.

The INTUC survey found that some units were closed due to the failure of the management and differences among partners. The urge for more profit also led to the closure of some units.

The survey found that no major industrial unit was closed down in Kanjikode industrial belt due to strike by workers.

The efforts by the Government have helped reopen only four units so far. They are Teatex, Kushan Rubber Works, Rallies Engineering and Cresent Cement.

The Left Democratic Front Government has initiated steps to revive some of the closed units.

Chief Minister V.S. Achuthanandan has convened a meeting in Thiruvanathapuram on Thursday to discuss the possibility of reviving six major units. They are Madras Spinners, Balaji Spinners, BPL Sanyo, Sun Metal, Silicol Metallurgical Ltd and Co-operative Sugars.

Chief Minister is also laying the foundation stone for the 350-acre Integrated Textile Park at Kanjikode being developed by the Kerala Industrial Infrastructure Development Corporation (Kinfra) at Kanjikode on Friday.

Kanjikode Industries Forum president K. Pankajakshan said the industries were closed due to various reasons — the policy of liberalisation, withdrawal of power tariff and tax concessions, non-availability of working capital etc.

He said the Government should take steps to study the problem of each industry and give maximum help to revive them.

But the Government failed to provide infrastructure facilities in the Kanjikode industrial area.

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