Thiruvananthapuram: The state has taken over Bharat Heavy Electricals Limited(Coward) Electrical Mechanics Limited, in a Central Public Sector Undertaking Kasaragod. the unit that was originally part of Kerala Electricals & Allied Engineering Company who had been working since 1990 was handed over BHEL in 2010.
While 51% of the shares were with BHEL, the remaining 49% were with the state government. The unit which was originally manufacturing power car alternators, train lighting alternators and diesel generator setting has since been operating as a joint venture initiative with plans to diversify into other sectors. However, the idea could not materialize and it started incurring losses from 2010 onwards.
When the Center clarified its policy of public sector disinvestment, the unit also started looking at privatization and that is when the state government decided to step in. The state government decided to invest Rs 77 crore including Rs 34 crore dues made by the unit. And Rs 43 crore is required to rejuvenate the unit. This also includes the outstanding salary of the employees of Rs 14 crore. The state government decided to retain the unit as a model unit in the public sector by modernizing the production unit which would manufacture traction motors, controllers, alternators, street light controllers etc.
In an online function on Wednesday, Chief Minister Pinarayi Vijayan announced the acquisition of the unit. Industries Minister P Rajeev said that the state government intends to take the state towards industrial development by modernizing and protecting the public sector. news network
While 51% of the shares were with BHEL, the remaining 49% were with the state government. The unit which was originally manufacturing power car alternators, train lighting alternators and diesel generator setting has since been operating as a joint venture initiative with plans to diversify into other sectors. However, the idea could not materialize and it started incurring losses from 2010 onwards.
When the Center clarified its policy of public sector disinvestment, the unit also started looking at privatization and that is when the state government decided to step in. The state government decided to invest Rs 77 crore including Rs 34 crore dues made by the unit. And Rs 43 crore is required to rejuvenate the unit. This also includes the outstanding salary of the employees of Rs 14 crore. The state government decided to retain the unit as a model unit in the public sector by modernizing the production unit which would manufacture traction motors, controllers, alternators, street light controllers etc.
In an online function on Wednesday, Chief Minister Pinarayi Vijayan announced the acquisition of the unit. Industries Minister P Rajeev said that the state government intends to take the state towards industrial development by modernizing and protecting the public sector. news network
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