Date:02/03/2007 URL: http://www.thehindu.com/2007/03/02/stories/2007030208042100.htm

Business

TRL revival plan gathers momentum

Staff Reporter

`One-time settlement talks successful'

KOCHI: The ongoing efforts for revival of public limited company Travancore Rayons Limited (TRL), Perumbavoor, received a shot in the arm with the banks and financial institutions agreeing in principle for a one-time settlement of dues.

A meeting convened by Industries Minister Elamaram Karim on Wednesday in Thiruvananthapuram arrived at the key decision, according to sources.

The representative of Indian Bank, Bank of India, State Bank of Travancore, Canara Bank and financial institutions including IDBI, IFCI and LIC participated in the meeting.

The one-time settlement was the stumbling block in the path of revival. The Coimbatore-based NDEE Group had abandoned its plan to take over the unit after the settlement process ran into rough weather.

The new initiative will facilitate the takeover of the ailing unit by the Kochi-based Elanjikkal Group.

A meeting of trade unions will be held in Aluva on March 2 to sort out labour issues.

More than 1,000 workers of the unit had been out of employment ever since the company declared lay-off four years ago.

The Kerala Government, during its earlier settlement efforts with the former promoter,

NDEE group, had agreed to extend necessary help in reaching a comprehensive settlement with TRL labour unions for a 10-year term.