Kerala seeks JVs with public sector for its sick units

March 20th, 2008 - 11:06 pm ICT by admin  

Kozhikode, March 20 (IANS) With a majority of government-owned industries in Kerala sick, the state is trying to form joint ventures (JV) with central public sector companies for their revival. “The companies under the central government have got good technology and financial strength. The companies here have out-of-date machineries. We need huge sums to revive these units,” Kerala Industries Minister Elamaram Kareem told reporters Thursday.

The minister lamented that the state-owned units never bothered to spend money for upgrading technology. “Malabar Cements, a state public sector unit, is earning good profit. But I think the company has not invested any amount in new machinery or technology,” Kareem said.

The minister said the strategy of setting up JVs with central government companies was initiated with the tie-up between Transformers and Electricals Kerala Ltd (TELK) and National Thermal Power Corp.

He said it was the same thinking that led the government to hand over the Kerala Hitech Industries Ltd to BrahMos Aerospace to make missiles.

“The government gave the company to BrahMos for Re.1. The entire BrahMos missiles will be assembled at the unit. According to Defence Minister A.K. Antony, this move will bring Rs.15 billion worth of investment into the state,” Kareem said.

The Indian Railways has already agreed to float a JV with Autokast Ltd, a state-owned unit that is in crisis. The minister said the railways were in the process of setting up a coach-manufacturing unit at Autokast, located in Alapuzha district.

Tags: , , , , , , , , , , , , , , , , , , ,

Posted in Business |