The Kerala Cabinet is likely to take a decision soon on reviving Travancore Rayons Limited (Trayons), which has been under layoff for the past two years after being under the Board of Industrial and Financial Reconstruction (BIFR) for over a decade.
Emphasising that a decision has to be taken by the Cabinet before June 13, a state industries department official said the Kerala High Court has set June 13 for hearing the issue.
The prospective promoter, trade unions and the state government have opposed the BIFR order for winding up the Perumbavoor-based company.
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The Coimbatore-based Dinosaur Industries Limited (DIL) had submitted a proposal to the state government for revival of the sick Trayons in May, 2001. The revival effort received a blow when BIFR turned down the proposal and ordered winding up of the company.
In April 2002, the Appellate Authority for Industrial and Financial Reconstruction (AAIFR) also dismissed the appeal against the BIFR winding up order and the matter was taken to the High Court.
The High Court directed the government to make it clear whether the proposal submitted by the prospective promoter, DIL, was acceptable to it.
Following this, the government formed a Cabinet sub-committee, headed by principal secretary (industries) John Mathai, to study the DIL proposals. The recommendations of this committee are expected to be placed before the Cabinet soon.
It is learnt that DIL has demanded concessional rate of 29 paise per unit for power and deferment of payment of electricity bill arrears as well as sales tax arrears.
The DIL also wants continuance of government guarantee for loans. The government is finding it difficult to grant all the demands of the promoters. On the other hand, there is pressure from various quarters to revive the company which employed 1,500 people.
As the trade unions and the new promoters have promised to work unitedly for the revival of the Trayons unit, a positive decision is expected from the government, the official said.