Chief Minister Oommen Chandy has urged Union Minister for Heavy Industries Praful Patel to take steps for the merger of Palakkad unit of Instrumentation Limited with Bharat Heavy Electricals Limited (BHEL) as ``it is the only way out to solve the crisis faced by IL.”
Chief Minister in his letter on Monday to the Union Minister has said that “Palakkad unit of IL is in utter financial crisis and the employees are put to undue hardship. The unit is in acute shortage of working capital. Due to non-payment of cost of raw materials suppliers have stopped supply to the unit resulting in delay on execution of orders. Due to this BHEL has cancelled their five project orders. During the last two financial years, not less than fourty crores of rupees has been transferred from Palakkad to Kota unit,” the letter said.
It said that during the financial year 2010-11 the IL Palakkad unit has achieved an all time high turn over of Rs.103.5 crore and the profit is expected to exceed Rs.20 crore. But the unit is in acute shortage of working capital.”
The Chief Minister said that ``the only way out to solve the issue is to merge the Palakkad unit of IL with BHEL which is under the consideration of the Government.”
ref:
http://www.thehindu.com/news/states/kerala/article2104201.ece
Tuesday, June 14, 2011
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