Financial Daily from THE HINDU group of publications
Thursday, Jan 22, 2004
Financial Daily from THE HINDU group of publications Thursday, Jan 22, 2004 |
||
|
|
||
|
Corporate
-
Sick Units Trayons revival likely by March-end G.K. Nair
Kochi , Jan. 21 ALL the bottlenecks for rehabilitating the Tranvancore Rayons Limited (TRL) at nearby Perumbavoor have been cleared and the company is likely to be revived by the end of the current fiscal, it is learnt. The final rounds of meeting with the promoters, Coimbatore-based Dinosaur Industries, by the concerned government departments are over and all the issues have been resolved amicably, a senior official at the Industry Minister's office told Business Line on Tuesday. He said the technical formalities such as clearance from the legal department would have to be completed besides signing an agreement with the promoters. Once these formalities are completed, it would go for the final approval of the Cabinet, which is expected to be concluded by March-end, he said. Earlier in December, the State Cabinet had in principle accepted the revised rehabilitation package submitted by Dinosaur Industries Limited (DIL). Officials of the departments of Finance, Electricity and Forest had discussions with the promoters last week and reached an agreement on the demands of the promoters such as concessions in electricity charges, sales-tax payments, long-term lease of land and allotment of forest land etc., besides working out modalities for finalising a one-time settlement with the financial institutions and banks and completing the formalities with the statutory institutions and those related to SEBI, the official said. The Chief Minister had said earlier that the State Government would extend all concessions that other States are granting to investors. The proposal would have been accepted long back had the promoters come up more reasonable demands, the official said. The two main thorny issues were deferment of payment of electricity charges and sales tax exemption. The promoters' demands included concessions/facilities such as electricity tariff at 29 paise per unit for a minimum period of five years; continuance of existing water tariff; extension of land lease for 99 years at the existing lease rental; continuance of government guarantee to Financial Institutions/Banks till clearance by the new management or 10 years; waiver of entire disputed/undisputed electricity dues/duty and sales tax; exemption from sales tax for 10 years and waiver of guarantee commission accrued and to accrue. They later diluted the demands and submitted a revised proposal as required by the Government. The company is under lay-off for over two years now and about 1,200 workers are without wages. At present, the unit is maintained by a skeleton staff of 70 people on a monthly wages of Rs 500.
More Stories on : Sick Units | Textiles | Kerala
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2004, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|