Govt to spend huge sum on capital investment

THIRUVANANTHAPURAM:  In a major deviation from the usual expenditure of the Industries Department on bank settlements and VRS settlements, for the first time the State Government will spend a huge sum on capital investment and plant modernisation. At the annual review meeting of the State-Owned Enterprises a total production of Rs 2,430 crore has been envisaged for 2010-11.

 As part of the expansion and diversification of Public Sector Undertakings (PSUs), projects worth Rs 275 crore will be implemented in 9 public sector units in the current financial year. As part of this, KMML, which registered a huge profit in 2009-10, will spend a massive sum of Rs 100 crore for its modernisation.

 Rs 54.80 crore had been set apart in the state budget for the revival of the PSUs. Apart from this amount, additional funds will be sourced from the surplus funds of the profit-making PSUs such as the KMML and Malabar Cements as loans.

 The modernisation of Kerala Electrical and Allied Engineering Company Limited will be carried out spending Rs 30 crore, while that of Travancore Titanium Products and Travancore-Cochin Chemicals will be done spending Rs 25 crore and Rs 51 crore respectively. All the three units registered profits in 2009-10.

 The budgetary allocation plus the surplus funds from profit-making PSUs will be utilised for setting up new units such as the Komalapuram Hitech Spinning and Weaving Mill (Rs 36 crore), Kannur Hitech Weaving Factory (Rs 20 crore), Textile Mill Kasargod (RS 16 crore), Traco Cable, Kannur (Rs 12 crore), Sidco Tool Room, Kozhikode (Rs 12 crore), Forging Unit, Shoranur (Rs 12 crore) and the Meter Factory, United Electricals, Palakkad (Rs 5 crore).

 Rs 126.27 lakh will be utilised for technology upgradation projects of 14 units, including Kelpalm, Keltron Component Complex, Keltron Electro Ceramic Ltd, Kerala Automobiles Ltd, Kerala Clays and Ceramic Products Ltd, Kerala State Bamboo Corporation and the Traco Cable Company Ltd among others.

 New production lines are to be set up at the Kerala State Drugs and Pharmaceuticals and at Kerala Soaps. While the former will implement a Rs 34-crore project for the total renovation and new production line, Kerala Soaps will utilise Rs 5 crore for the new production unit.

 The capacity of the Malabar Spinning and Weaving Mills and that of the Thiruvananthapuram Spinning Mill will be doubled with Rs 15 crore and Rs 5 crore respectively.

 While only 12 out of the 43 PSUs under the Industries Department showed profit in the year 2005-06, in 2009-10, the number of loss-making units came down to five and the total profit made by the PSUs touched Rs 239.75 crore.

 There has been a significant increase in the turnover of these units as well. While the total turnover in 2005-06 was Rs 1,522.98 crore, in 2009-10 it was Rs 2,190.73 crore.

 Compared to last year, there has been a 4.07-percent increase in turnover and a 41.48-percent increase in profit. Rs 71.5 crore was remitted to the treasury as sales tax, Rs 124.55 crore as excise duty and Rs 144.52 crore as electricity charges.

 Around 22 acres of land had been acquired for a KINFRA Marine Park at Beypore and 88 acres for an Advanced Technology Park at Ramanattukara.