Kerala, NTPC to sign MoU on TELK

Thiruvananthapuram, June 21 (UNI) The Kerala Government will sign an MoU on June 23 with the National Thermal Power Corporation (NTPC) for putting back on rails the state PSU, Transformers and Electricals Kerala Ltd (TELK),Industries Minister Elamaram Kareem said today.

Describing the MoU as a milestone, he told reporters here it would help in upgrading technology and making the PSU, which manufactures transformers, into a profitable enterprise.

Under the MoU, NTPC would hold 44.64 equity in TELK with 51 per cent held by the government.

The exercise would be conducted in three steps or stages. In the first stage, the focus would be on 'capacity utiliation', which could not be undertaken earlier due to lack of technology and modernisation.

The second phase would focus on capacity development with an aim to produce 20 high capacity transformers. An amount of Rs 190 crore would be needed for both the phases.

In the last phase, the focus would be on service and maintenance.

According to the MOU, the NTPC would get the managing director's post while the chairman would be a government nominee, Mr Kareem said.

The TELK located in Angamali near Kochi, was facing closure and this venture would revive PSU, he said.

''This shows Kerala is an industrial friendly state,'' the Minister said.

UNI