Financial Daily from THE HINDU group of publications
Wednesday, Mar 20, 2002
Financial Daily from THE HINDU group of publications Wednesday, Mar 20, 2002 |
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Corporate
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Sick Units Revised plan for Trayons revival G.K Nair
KOCHI, March 19 THE prospective promoters of Travancore Rayons Ltd (Trayons) at Perumbavoor have handed over to the Kerala Government their revised proposals involving a total investment of Rs 2,000 crore in two phases for reviving the ailing company. In the first phase, the Coimbatore-based entrepreneurs would be investing Rs 500 crore. Of this, Rs 60 crore would be spent for taking over the sick unit as per SEBI guidelines, completion of restructuring as per BIFR approval and for changing the management, sources close to the promoters told Business Line. They would invest Rs 175 crore for technology upgradation, erection and commissioning of equipment and machineries, Rs 265 crore for raising the production capacity of carbon disulphur (CS 2) which would be based on natural gas technology to 33 tonnes per day(tpd). The amount would also be used to increase the production capacity of rayon and cellophane to 50 tpd each, besides setting up of a 12 MW captive power plant. They said the promoters had sought permission of the State Government for setting up a pulp plant in the second phase with a production capacity of 200 tpd and a viscose staple fibre plant. For this they demanded allotment of 300 hectare under 99-year lease. The plant, according to the sources, would be located at suitable place outside the premises of the Trayon unit. The promoters also demanded 25,000 hectares of forest land on 99-year lease for developing required species of wood (Eucalyptus) for captive consumption either independently or joint operation with the State Forest Department. During the gestation period of the trees, they wanted the Government to grant permission for supply/allotment of eucalyptus wood at Rs 300 a tonne on conversion basis. They wanted all the concessions granted to Trayons during the rehabilitation period, expected to be five to ten years. Loans to financial institutions would be restructured on the basis of the latest RBI guidelines. The proposal also wanted continuance of the Government guarantees till the repayment of the loans, besides concession of sales tax for 10 years. According to the proposal, human resources would be rationalised and employees absorbed in a phased manner depending upon the commencement of activities. The Industry Department sources said the Government was actively considering the proposals and would convene a meeting of all concerned to discuss the demands in the proposal before a decision was taken to sign an MoU with the entrepreneurs. Trayons would be filing an appeal to the AAIFR, based on the proposal from the new promoters, against the winding-up order passed by BIFR on January 31, the sources added.
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