Story of a PSU revival: Promised Rs 77 crore, released Rs 0

KEL-Electrical Machines Ltd, which was taken over by the Kerala state government is set to be inaugurated even before the machines that have been lying unused for 20 months have been serviced.
Representational Image (File Photo)
Representational Image (File Photo)

KASARAGOD: Kasaragod is likely to see another sham inauguration of a government establishment on December 10. After cutting the ribbons for incomplete hospital buildings, now the state government has decided to inaugurate KEL-Electrical Machines Ltd -- which it took over from Bharat Heavy Electricals Limited (BHEL) three months ago -- without even servicing the machines that had been lying idle for more than 20 months or fixing the asbestos roof of the factory in Mogral Puthur panchayat.

The slow progress of work is because the government had not yet released a single rupee from the s -crore revival package announced by the chief minister on September 8. But these details will not deter the government from reopening the defunct factory which used to make alternators for electric trains and the defence sector.

"The reopening of the unit has been tentatively fixed on December 10. The minister (for industries P Rajeeve) will be in Kasaragod that day," said A P M Mohammed Hanish, principal secretary of the Department of Industries. He said the machinery is being overhauled, repaired and serviced. However, the trade unions dismissed it as half-truths.

The minister has called for a "final round" of meeting with the four major trade unions -- STU, INTUC, CITU and BMS -- to finalise the guidelines for the functioning of the unit on December 2, the principal secretary said. The government is also likely to press the unions to sign an MoU, which will include the guidelines and the new retirement age, and details on clearing the salary dues.

The trade unions said the government has not shared the agenda of the meeting with them. "And we don't know if it is the final round of talks," said K P Mohammed Ashraf, leader of the Swatantra Trade Union affiliated with the IUML.

The unions are sceptical about the reopening, which was initially slated for November 1. "If the government reopens the unit on December 10, it will be another eyewash," said A Vasudevan, general secretary of a trade union affiliated to the Congress's INTUC.

"Since the state government's formal takeover of the unit on September 8, it has not released a single rupee from the revival package,” he said. The CM had announced the Rs 77-crore package for clearing employees’ salary dues and also for the revival and modernisation of the unit. The 139 employees of the unit have not got salaries for the past three years.

According to the unions, the revival package was proposed by the Public Sector Restructuring and Internal Audit Board (RIAB). From the Rs 77 crore, RIAB had proposed to the state government for the immediate release of Rs 20 crore to kick-start the revival and the reopening. "The government has been sitting on the proposal for the past two months though RIAB said it is for emergency use," said Vasudevan.

Principal secretary Hanish said the proposal was under the "active consideration" of the state government. "Sooner or later, we should get that money," he said. He said the government has given Rs 2.5 crore for overhauling, maintenance and repair of the machinery with the help of the staff members. "It is progressing," he said.

However, trade unions differ with the principal secretary on that, too. They said the government facilitated a bridge loan of Rs 1.5 crore from Kerala Minerals and Metals Ltd -- a profitable PSU -- to begin the cleaning work. All the 139 employees were given Rs 25,000 each as financial support on November 1. The asbestos roof of the factory is being replaced. But even after 30 days, only 10% of the work is complete, said Ashraf. "It is just a 15-day job," he said.

"The servicing of the big automatic lathe machines, which have to be done by technicians from the manufacturers, have not yet started," said Vasudevan. It will take around two months to service those machines. "Only the small machines that can be serviced by the employees have been done. That too around 70%," he said. If the government opens the unit without making any concrete efforts to revive the unit, it will be just another function for headlines, said Ashraf.

On retirement age, the trade unions said the government wanted to reduce the retirement age to 58 years from the 60 years now. "If the government presses on with it, it has to come up with an attractive VRS package," said Vasudevan.

The trade unions insist that the government should clear all the salary dues. "Even before the company under BHEL stopped paying our salaries, it stopped crediting our share to the PF account despite deducting it from our salaries. It was also not paying the premiums of our life insurance though it was being deducted from our salaries," said Vasudevan. He said the employees were pushed into a debt trap even before they stopped paying the salaries three years ago.

"We defaulted on paying EMIs for the loans taken to build houses and for our children's education. Now the banks are after us,” he said. Of the Rs 77 crore the CM announced, Rs 34 crore was for clearing the salary dues and debt of the company. "When the chief minister has announced the breakup, why are the officials still bargaining over it," asked Vasudevan.

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