Staring down the barrel in the face of revenue recovery and account freezes, Travancore Cements Limited (TCL) has received much-needed support, with the Kerala government deciding to extend an emergency financial assistance to the cash-strapped public sector undertaking (PSU).
A decision to this effect was taken during a high-level meeting convened by Industries Minister P. Rajeeve on Wednesday. The meeting also decided to formulate a long-term plan to cover the company's various liabilities and losses.
Stating that the government would take steps to overcome the working capital crisis faced by the company, Mr. Rajeeve spoke of a plan to settle the lease arrears of the company since 2010 in a meeting with the Revenue Minister. A decision will soon be taken regarding the sale of the company's property at Kakkanad to settle its liabilities.
Plans are also afoot to reconstitute the company director board by including professionals. A decision with regard to augmenting the production of white cement – the core product of the company – too was made.
Former Chief Minister Oommen Chandy, officials of the Industries department, TCL chairman Babu Joseph and representatives of various trade unions also attended the meeting.
Struggling to stay solvent in the face of revenue recovery and account freezes, the TCL management had approached the State government seeking emergency assistance. The State-owned PSU owes debts to the tune of ₹33 crore, including ₹13 crore as land lease, ₹3 crore as value-added tax, besides power dues.
Established in 1946, TCL raked in profits till 2000 but was severely bruised by the ban on dredging in Vembanad Lake for clams, its key raw material. Adding to its woes were the delays and diversions in utilising the funds allotted by the State government from time to time.
