State assumes control of BHEL’s Kasaragod arm

Thiruvananthapuram: The state has taken over Bharat Heavy Electrical Ltd’s (BHEL) Electrical Mechanics Ltd, a central PSU in Kasaragod. The unit that was originally part of Kerala Electricals and Allied Engineering Company that was functioning since 1990 was handed over to BHEL in 2010.
While 51% shares were with BHEL, the remaining 49% was retained by the state government. The unit that was originally manufacturing power car alternator, train lighting alternator and diesel generator setting, has since then been functioning as a joint venture initiative, with a plan to diversify into other segments.However, the idea could not be materialized and it began posting losses continuously since 2010.
When the Centre clarified its policy of disinvesting the public sector, the unit also began staring at privatization and that is 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 required for rejuvenating the unit. This also includes Rs 14 crore in salary arrears to employees. The state government decided to retain the unit as a model unit in the public sector by modernizing the production unit that will manufacture traction motors, controllers, alternators, street light controllers, etc.
In an online function on Wednesday, chief minister Pinarayi Vijayan announced the takeover of the unit. Industries minister P Rajeeve said that the state government intends to take the state to industrial growth by modernizing and protecting the public sector. tnn