Date:27/10/2006 URL: http://www.thehindubusinessline.com/2006/10/27/stories/2006102700882100.htm

Back Move to revamp Kerala PSUs

Our Bureau

Thiruvananthapuram , Oct. 26

The Kerala Government has initiated various measures to revitalise the public sector undertakings under the Industries Department.

A permanent mechanism has already been put in place by which the Public Sector Restructuring and Internal Audit Board (RIAB) is required to report in detail the working of the PSUs to the Department on a monthly basis.

Appropriate action would be taken after examining the reports in the presence of the Industries Minister.

Steps to better PSUs

The Department will take steps to correct or improve the functioning of the PSUs after analysing the details provided by them about production, production costs, capacity utilisation, marketing and ratio of wages, according to an official statement from the Industry Minister's office.

As per the estimates available in August this year, 12 companies were working profitably, while 27 were running in loss.

The aggregate loss by the PSUs was to the tune of Rs 26.44 crore. Besides, 12 units could not utilise even 60 per cent of their installed capacity.

The companies running in profit are: Malabar Cements, Kerala Minerals and Metals Ltd, Steel and Industrial Forgings, Kerala State Textiles Corporation, Handicrafts Development Corporation, Kerala Ceramics, Malappuram Cooperative Spinning Mill, Kerala State Palmyrah Products, Kerala Clays and Ceramics Products, Metal Industries, and Forest Industries (Travancore) Ltd.

The Department has initiated steps to reopen Malabar Spinning Mills and Trivandrum Spinning Mill, which have been lying closed for some time now. The Malabar Spinning Mills will be reopened on November 13.

The Department has also started working on reviving Kerala State Drugs and Pharmaceuticals Ltd (KSDP). As part of the package, the Health Department and cooperative hospitals will purchase all the drugs produced by KSDP.

Schemes for revitalisation

Discussions had been held and understanding reached on schemes to revitalise companies such as Kerala State Electronics Development Corporation (Keltron), Kerala Hitech Industries, Transformers and Electricals Kerala Ltd, Autokast, Sitaram Textiles, Steel Complex, Steel Industrials Kerala Ltd., and Traco Cables.

The Kerala State Electricity Board (KSEB) has agreed to purchase the entire lot of meters manufactured by United Electrical Company. KSEB will also buy the cables produced by Traco Cables.

The Health Department has expressed interest in buying handloom and khadi products. Also, steps are underway to market these products in association with the Education Department.