Kerala budget gives thrust for revival of PSUs

Thiruvananthapuram, Mar 9 (UNI) The Kerala government proposes to revive sick public sector industries by modernising them for which a sum of Rs 17 crore has been set apart in the budget 2007-08.

Presenting the budget in the State Assembly today, Finance Minister T M Thomas Isaac said more funds would be made available for the modernisation perpose, estimated to cost Rs 76 crore.

He said registration of the Infrastructure Kerala Ltd, a new company to promote industrialisation, was in the final stages. The government would have a stake of 26 per cent in the company having a paid-up capital of Rs 100 crore. The remaining shares would be collected from non-resident Keralites.

Dr Isaac said the budget had set apart Rs 9.5 crore for the Kerala Industrial Infrastructure Development Corporation (Kinfra), a government undertaking engaged in providing infrastructure facilities for starting industries.

He said separate packages had been prepared for the revival of sick public sector units based on their technologies and products.

An understanding had been reached with banks for one-time settlement of loan arrears owed by these units. The arrears would be paid to the banks in three instalments.

The banks had agreed to make available required working capital to these units, Dr Isaac said and added that a sum of Rs 25 crore had been earmarked for one-time settlement.

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