Kerala - Kochi   

Firm’s revival plan faces another roadblock

KOCHI: The revival of Travancore Rayons, the Perumbavoor-based sick industrial unit, which had passed several hurdles in the past, is facing yet another roadblock. This time too, the problems do not seem insurmountable, yet none is able to give a schedule for the reopening.

Negotiations had been in progress with the Elanjickal Group of Kochi for the take-over of the company for which a package was being considered.

The settlement of dues to the financial institutions was a key stumbling block and several rounds of consultations had failed to reach a final decision.

The dispute at present is over a few crores of rupees. While the consortium of banks has staked a claim of over Rs.6.5 crore, the Elanjickal Group was ready for a one time settlement by paying Rs.5 crore, according to a leader of the Rayons Samrakshana Samithy, an all-party forum floated to work out and assist the revival process.

At a recent meeting convened by Chief Minister V.S. Achuthanandan in Thiruvananthapuram, the banks were asked to give a written response to the existing proposal, the Samithy representative said. The reply was yet to be submitted, according to him. The Elanjickal Group was ready to go ahead with the current proposal, according to its spokesman. He told The Hindu that he was hopeful of the project taking off. There was no alternative, he said. One of the costly components of the machinery used in the factory, a ‘jet’ made of diamonds et al, worth a few crores of rupees, has been reported missing. An official probe has been initiated into the incident, he said. The group would be happy if any other promoter came forward to take over the company on better terms, he said. The Coimbatore-based NDEE Group, which had expressed interest in taking over the unit earlier, backed out of the proposal over the issue of settlement of dues.

As an alternative to the ongoing effort, a proposal has been brought before the government to announce its intention to look for a new promoter. A section of workers has launched a new move demanding that the assets of the company be sold off to pay the dues to the workers. The credibility of the present promoter has been questioned by a separate group of people.

Various political interests had been at play in the entire episode of revival, said a key leader involved in the process.

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