The Hindu : Front Page : Keltec transfer a paradigm shift

Online edition of India's National Newspaper
Wednesday, Dec 26, 2007
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Keltec transfer a paradigm shift

C. Gouridasan Nair

Signals government’s determination to rescue crisis-ridden PSUs

Several similar projects on the anvil
Rs.125-crore investment likely in BrahMos unit

THIRUVANANTHAPURAM: The formal handing over of the ailing State Public Sector Unit Kerala Hitech Industries Limited (Keltec) to BrahMos Aeorspace on December 31 would mark a paradigm shift in Kerala’s industrial scene.

This is for the first time that a State PSU is being transferred lock, stock and barrel to an organisation controlled by the Union government, the only similar example being the transfer of the Electronics Research and Development Centre (ER&DC), which was under the Kerala State Electronics Development Corporation (Keltron), to the Centre in the Eighties. The other instance of Central and State PSUs coming together, that of the National Thermal Power Corporation (NTPC) joining forces with the Transformers and Electricals Kerala (TELK) Limited, Angamaly, is one of a joint venture rather than complete takeover.

Those at the helm of the Industries Department feel that the takeover of Keltec by BrahMos Aerospace would send a strong signal to the corporate world about the State government’s readiness to experiment with different alternatives to rescue the crisis-ridden State PSUs even while remaining committed to their retention in the public sector. The joint initiative involving the Railways and Autokast Limited, under the Steel Industries Limited Kerala (SILK) for manufacturing light weight fabricated bogies at an investment of Rs.85 crore is at an advanced stage of planning. Other similar initiatives involving Keltron and Steel Complex Limited are also under discussion.

Keltec, which is being rechristened BrahMos Aeorospace (T) Limited, would be involved in the design, manufacture and integration of supersonic cruise missiles. Apart from missile production, BrahMos plans to develop new generation launch vehicles for space applications for ISRO and continue to supply all critical components for DRDO and BARC from the facility. A total investment of Rs.125 crore is anticipated in the unit. Five acres of land lying adjacent to the unit has already been acquired for expanding its operations. The projected annual turnover of BrahMos unit here is Rs.500 crore within three years and Rs.1,000 crore within a span of five years.

Titanium and its alloys being its major inputs, the BrahMos unit would ensure a long-term market for the proposed titanium sponge unit in the State. An expert panel is working on the proposal for titanium sponge production with Russian participation.

Defence Minister A.K. Antony would be on hand to witness the takeover of Keltec by BrahMos Aerospace.

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