BANGALORE: The recent ruckus in the Legislature over irregularities in purchase of transformers and other electrical equipment has come as a blessing for the state-owned Karnataka Vidyuth Karkhane (KAVIKA) which will see its fortunes revived.
The transformer manufacturer, which was set up in 1933 and is believed to be the oldest in the country, is struggling for survival now.
The state government, which constituted a legislature committee to probe irregularities in the purchase of power and power equipment, has decided to infuse fresh funds for KAVIKA’s modernisation and expansion to reduce dependence on private manufacturers.
A senior official in the Energy Department told Express that plans were being drawn up to provide `20 crore as advance payment for KAVIKA, in instalments, to double the production capacity from the present 2,000 transformers to 4,000 a month.
Presently, the state is buying about 80,000 to 1 lakh transformers annually.
“The quality of our transformers is far superior to that of private manufacturers and the rate is competitive too. The expansion would not only increase the strength of the workforce from the present about 300 to 600, it will also bring down the expenditure on purchase of transformers,” an official said.
The state government is also considering a proposal to modernise another state-owned company, Mysore Electrical Industries (MEI), which makes switchgear equipment.
Minister for Energy D K Shivakumar, who is leading the Congress campaign in the byelection to Bellary Assembly seat, could not be reached for comment.