Caught up in liabilities, Kerala Automobiles Limited will receive a boost from the Kerala government
Responding to a submission from K. Ansalan, Industry Minister P. Rajeeve said the state government had made plans to transform KAL into a major manufacturer of electric three-wheelers.
Industry Minister P. Rajeeve told the assembly on Thursday that the government is offering all possible help to the public sector Kerala Automobiles Limited (KAL) to bring the stricken company out of the red and get it back on track. .
Responding to a submission from K. Ansalan, Mr. Rajeeve said the government had made plans to transform KAL into a major manufacturer of electric three-wheelers. Describing the details of the crisis caused by the accumulation of financial liabilities, he said the company had accumulated huge arrears on EPF and the payment of bonuses to employees for years.
The EPF authority had initiated a seizure procedure on the company’s bank and treasury accounts to collect arrears in the amount of 5.87 cr. Retired employees also did not receive any bonus from 2013. Arrears on this account amounted to ₹ 2.9 cr, the minister told the House.
Mr Rajeeve said KAL also owed 15.96 cr on the loan and interest payment to the State Bank of India (SBI) and a private finance company. The Neyyattinkara sub-court had initiated proceedings for the seizure of the company’s assets in a case filed by the financier, while the SBI had taken KAL to the debt collection court.
The Minister informed the House that the government had granted financial assistance to the tune of 35 cr. over the past five years to help KAL install new machinery and build electric three-wheelers. An additional ₹ 6cr has been provided to the company to help weather the COVID-induced crisis.
In addition to this, an expenditure of 10 cr has been budgeted for the development and production of electric vehicles.
Rajeeve said the government also approved the establishment of a new KAL unit in Kannur to increase the output of the unit based in Thiruvananthapuram.