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
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