The Hindu : Business : Kerala Ceramics hoping to receive Government aid

Online edition of India's National Newspaper
Tuesday, Oct 25, 2005

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Kerala Ceramics hoping to receive Government aid

Staff Reporter

KOLLAM: Rajashekaran Pillai, Managing Director of Kerala Ceramics Limited (KCL), Kundara, said here on Monday that contrary to fears and allegations raised by trade unions, neither the Government nor the management was planning to hand over the public sector KCL to the private sector. At a press conference here, Mr. Pillai, however, said it was true that the company was facing financial crisis and emergency support from the Government was necessary.

The company has submitted a proposal for Rs.95-lakh aid to the Government. A meeting of the management and trade unions with the Minister for Industries has been convened on Tuesday to discuss the proposal.

He said it was true had not made any profit till date after its launch in the 1930s. The Government had extended financial support in 1997, 1999, 2000, 2001 and 2003.

Mr. Pillai said production at the company had come down, mainly because the machinery in operation was outdated. But, replacing them would require huge investment.

The company had also incurred huge debt. It also faces revenue recovery proceedings for Rs.27 lakhs. KCL's dues to the Kerala State Electricity Board has

crossed Rs.14 crores.

He said in 2000, the Government had agreed to sanction Rs.8.25 crores for revival of the company. However, it was due to the negative stand adopted by a section of the trade unions at that time that the company failed to realise the sanctioned amount. This had stalled the revival programmes planned by KCL.

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