Date:11/08/2004 URL: http://www.thehindubusinessline.com/2004/08/11/stories/2004081101201900.htm

Back Keltron Counters privatisation in a decisive stage

Mony K. Mathew

Thiruvananthapuram , Aug. 10

THE privatisation of Keltron Counters Ltd has reached a decisive stage with the Alukkas group having technically qualified.

The financial bid is yet to be opened and if the group makes the grade in that too, Keltron Counters may become the first public sector company to be privatised in the State.

Keltron Counters is one of the five public sector companies that have been put up for disinvestment as per the recommendations of the Enterprises Reforms Committee (ERC).

Apart from the Alukkas group, there is another contender, according to sources in the Industries Department.

The company was incorporated in 1964 as a subsidiary of Kerala State Electronics Development Corporation (KSIDC) for the manufacture of counting devices, electronic energy meters and Defence products.

In view of mounting losses, it was referred to the Board for Industrial and Financial Reconstruction (BIFR) in 1992. Subsequently, the board issued winding up orders to the company.

Though the management filed an appeal petition before the Appellate Authority for Industrial and Financial Reconstruction, the latter endorsed the views of BIFR at its hearing in 2002.

As per the latest review of the Bureau of Public Enterprises, the company has accumulated losses to the tune of Rs 21.42 crore, while its net worth stood negative at Rs 16.63 crore.

In its proposal, the ERC had recommended downsizing of the employee strength by 50 per cent through a voluntary retirement scheme and accordingly, 138 employees left the company. The Government had sanctioned Rs 6.87 crore to implement the scheme.

The sources said that 108 employees more have now applied for retirement under the Social Security Net Programme (SSNP) of the Government.