As the State government is forging ahead with its plans to turn the Kerala Paper Products Limited at Velloor profitable, the clock is ticking for one of the oldest Public Sector Undertakings in Kottayam — the Travancore Cements Limited (TCL).
The company is struggling to stay solvent amidst warnings of revenue recovery and account freeze. It has now approached the State government in the face of a notice from the Provident Fund Commissioner warning of an account freeze in three days. The notice, issued on the basis of complaints lodged by former employees, has demanded that the company clear the retirement benefit dues to its former employees since 2019.
Taking a serious note of the situation, labour unions too have approached Industries Minister P. Rajeeve seeking his urgent intervention to provide ₹6.6 crore to the company to avoid the account freeze.
Another notice was served by the Deputy Collector of Revenue Recovery seeking to recover debts worth ₹33 crore, including ₹13 crore as land lease, ₹3 crore as value-added tax, besides power dues. The notice has been forwarded to the government for filing an appeal.
₹85-lakh operational profit
Confirming the development, TCL chairman Babu Joseph said the unit had already worked out short-term and long-term plans for recovery, but those could be implemented only with financial assistance from the State government. “The company made operational profit of about ₹85 lakh the previous fiscal, but its overall financial position remains dire. The Industries and Finance Ministers have been apprised of the situation and options are being explored to infuse funds under the Rehab plan,” he said.
Among the key proposals to clear these dues also include the sale of a 2.81-acre property under the company's possession in Kakkanad, the market value of which is estimated to be well over ₹30 crore.
Established in 1946, TCL raked in profits till the year 2000 but was severely bruised by the ban on dredging in Vembanad Lake for clams, its key raw material. Adding to its woes were the delays and diversions in utilising the funds allotted by the State government from time to time.
Meanwhile, official sources said the new grey cement production unit established by the company was set to get going within a few weeks.
