Thiruvananthapuram: The country has taken over Bharat Heavy Electrical Ltd.
(Bhel) Mechanics Electrical Ltd, a PSU center in Kasaragod.
The unit which was originally part of the Kerala Electricals and the English Engineering Company that functions since 1990 was handed over to Bhel in 2010.
While 51% of the shares with Bhel, the remaining 49% was maintained by the state government.
The unit was originally manufacturing car alternators, alternator alternators and diesel generator settings, since it functions as a joint venture initiative, with plans to diversify to other segments.
However, the idea cannot be realized and began to post continuous losses since 2010.
When the center clarifies its policy to release the public sector, this unit also began to stare privatization and that’s when the state government decided to step in.
The state government decided to invest RS 77 Crore, including RS 34 crore arrears made by the unit and RS 43 Crore needed to rejuvenate the unit.
It also includes Rs 14 Crore on arrears of salary to employees.
The state government of the State decided to maintain the unit as a model unit in the public sector by modernizing the production unit that will produce traction motors, controllers, alternators, street lights controllers, etc.
In the online function on Wednesday, Minister of Pinarayi Vijayan announced the takeover of the unit.
The Pajeeve Minister of Industry said that the state government intends to take the country for industrial growth by modernizing and protecting the public sector.
TNN.