KOCHI: The state government’s move to transfer the entire 35.5 acres of land and property of the loss-making Traco Cable Company Ltd to Infopark, to tide over its financial woes has not gone well with a section of the public sector’s employees.
Speaking in the assembly last week, Industries Minister P Rajeeve said Traco Cable Company has been recording losses continuously for the past several years, and it’s difficult to continue its operations, and hence the decision to transfer its Irumpanam land and building to Infopark.
The minister said the accumulated liability of the state government-owned PSU is about Rs 245 crore.
“We discussed revival plans with trade unions in the company, and the state leadership of the trade unions. A proposal to merge the Irumbanam unit with the Tiruvalla unit was also explored. We cannot sell the property as it is ‘pattaya’ land. What we can do is transfer the land (to Infopark),” Rajeeve said.
Established in 1964, Traco has three manufacturing units – one at Irumpanam, another at Tiruvalla and the third unit commissioned in 2011 exclusively for building wiring cables at Pinarayi-Thalassery in Kannur district. The installed capacity of the Irumpanam and Tiruvalla units is 9,000 metric tonnes (MT) of aluminium wire rods. The PSU’s customers include electricity boards, Indian Railways, BSNL, and electricity supply companies in various states and project groups.
Meanwhile, sources at the company told TNIE that the entire financial burden can be resolved by transferring 30 acres of its Irumpanam property while retaining 5 acres.
“We have sufficient order book, and we can tide over the crisis by transferring 30 acres of land. However, the government is saying that Infopark would take over the land only if the entire property is handed over,” said a source, who wished not to be identified. “It’s the only company in India that manufactures cables and conductors,” he said.
There are about 180 to 200 employees at the Irumpanam unit, and after the transfer of property, these employees would be posted at the Tiruvalla and Thalassery units. This could be the reason for the resistance of a section of employees.
According to the sources, the company fell into crisis due to mismanagement since 2020.
"We don’t have a full-time managing director. The current managing director (Shaji M Varghese) is also the full-time managing director of Kerala Electric & Allied Engineering Company Ltd (KEL),” said the source.
When contacted, Shaji said that the government has taken the decision after discussing the issue with the trade unions.
“The salaries for the employees have not been paid for several months. We have one or two National Company Law Tribunal (NCLT) cases too for non-payment of dues. What we are doing is restructuring. The business model will remain unchanged, and the same products will continue to be manufactured,” he said.
Further, as per the employees’ demand, Traco Cable Company is also putting forward a package, which includes an option of exit for employees who have lesser years of service.
According to him, a study report will be prepared by the Board for Public Transformation (BPT) chairman, who will make a proposal and submit it to the government.
Minister Rajeeve pointed out that earlier when another public sector TELK was in crisis, its land was transferred to the Kerala State Industrial Development Corporation.
“And, the state government gave the money to TELK. This helped TELK to tide over the crisis while we could start a business park at Angamaly on TELK land. The same park will now see Bharat Biotech, which attracted global attention for its Covaxin, the Covid vaccine it developed during the pandemic, to start its unit,” he said.
Company’s current stats
Total outstanding liability: Rs 245 crore
Total land at Irumpanam: 35.5 acre
Employees at Irumpanam unit: 180-200