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KMML: unions flay ‘apathy’

KOLLAM: Leading trade unions at Kerala Minerals and Metals Limited (KMML) have alleged that vested interests are working overtime for the closure of the company.

At a press conference here on Saturday, trade union leaders affiliated to the CITU and INTUC alleged that they were enough grounds to raise doubts whether the State government too was party to this conspiracy.

Chairman of the Save KMML Action Committee S. Rajashekara Warrier and general convener R. Jayakumar said that vested interests were even trying to influence the Chief Minister and the Industries Minister for the success of their game plan.

The leaders said that since the past couple of months, the profit-making KMML started making losses.

This was mainly because the cost of production was higher than the market price of its prime product titanium dioxide pigment. This resulted in 6,000 tonnes of titanium dioxide pigment lying unsold.

In order to overcome the problem, the company submitted three projects to the government to help bring down the cost of production. Implementation of the projects would involve only Rs.100 crore.

The main aspect of the project was to use coal as the fuel for the boiler. At present, furnace oil was the fuel. The price of furnace oil zoomed to over 270 per cent during the past five years.

If the projects were implemented, the cost of production would come down by Rs.17,000 on a tonne. This could save Rs.30 crore a year. In spite of being convinced, the government was not issuing the orders to implement the project.

“This is what makes us suspect that there is a conspiracy behind the government delay to issue orders,” Mr. Warrier said.

Meanwhile, there was a move by vested interests to get a Rs.1,113.42-crore expansion project implemented.

This again was part of the conspiracy. Such a project at this juncture would only have an adverse effect on the company since heavy loans would have to be availed of for the purpose, the leaders said.

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