Southern States - Kerala

Rayons revival: HC order to help Govt. initiative

By Our Staff Reporter

KOCHI JUNE 21. The Kerala High Court decision, on Thursday, to consider the case for the winding up of the Perumbavoor-based Travancore Rayons after two months has provided a breather to the State Government to finalise the proposals for revival of the unit with possible private participation.

The court decision comes a few days after the State Government signed a memorandum of understanding with a prospective private promoter that a final agreement on a revival project would be signed within two months. The State Government has given its consent to consider the concessions that have been asked for by the prospective partner, a businessman based in Coimbatore.

The case for winding up the Rayons unit has come up before the High Court after the Appellate Authority for Industrial and financial Reconstruction (AAIFR) refused to consider a plea by the management and trade unions of the Perumbavoor-based unit for providing more time for the revival of the unit.

However, the State Government had concluded an MoU with the prospective partner with a view to gaining a little more time in putting in place a viable proposal for the unit's revival.

Travancore Rayons, the only public sector undertaking in the sector, was referred to BIFR more than a decade ago after it continued to record losses. Attempts to revive the unit had failed.

A high-level committee, headed by the Principal Secretary, Industries, had looked into the proposals submitted by the prospective private promoter. The committee later submitted a report to the Industries Minister.

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