India - Revival plan launched for Balaramapuram mill

The State-owned Trivandrum Spinning Mill Limited at Balaramapuram, which was under the regime of the official liquidator appointed by the High Court, has been handed over to the Kerala State Textile Corporation (KSTC) as part of a revival plan drawn up by the government.

Industries Minister Elamaram Karim handed over the keys of the institution, popularly known as Balaramapuram Spinning Mill, to KSTC Chairman P. Nandakumar and Managing Director M. Ganesh at a function held at the mill on Tuesday.

The Minister said as per the revival plan, the company would resume production in May which would also coincide with the programmes arranged in connection with the second anniversary of the government.

The company with 25,000 ring spindles used to employ about 500 people and produce two tonnes of yarn per day. However, it became a sick unit in the 90s and was closed down partially in 1998, and totally in 2002. It was taken over by the official liquidator in 2004 as per the orders of the High Court.

Almost all employees had opted for the voluntary retirement scheme (VRS). The court had suggested that the government should submit a specific scheme if it was planning to revive the mill.

Accordingly, the State government submitted a revival scheme which was approved by the High Court. The scheme envisages an investment of Rs.4.37 crore, of which Rs.1.28 crore will be raised by selling some of the assets of the company.

Handed over to Kerala State Textile Corporation

Revival envisages Rs.4.37-crore investment

HOC's excess land to be used for Speciality Chemicals plant

The government today said a value-added plant may be set up on the 500 acre vacant land of Hindustan Organic Chemicals complex at Rasayani in Raigad district of Maharashtra.
Hindustan Organic Chemicals (HOC), a loss-making public sector company, was given a revival of package of Rs 250 crore six months back. HOC has another unit located in Koch, which is making profit.
"We want to use the 500 acre unidolised land in the 1,000 plus acre campus for producing value-added products," Union Chemicals and Fertilisers Minister Ram Vilas Paswan said during his visit to the HOC complex here today.
HOC complex is spread over 1,061 acre in the Raigad district, 50 kilometres from Mumbai.
HOC is planning to produce Speciality Chemicals and has invited expression of interest from private parties for a joint venture.
"We have got some encouraging responses for Expression of Interest invited," HOC's Chairman and Managing Director Arvind S Didolkar said while talking about company's plan to move towards manufacturing of Speciality Chemicals from Commodity Chemicals.
The company's Raigad-based unit is making a loss of around Rs 50 crore per annum, but after the revival package, it is expected to make profit in another 3-4 years.
"The Company has retired all the high cost debt and now we have also started the physical restructuring, which will be completed by 2010-11," Didolkar said.