Rs.574 crore for expansion of PSUs

THIRUVANANTHAPURAM: Industries Minister Elamaram Karim said here on Friday that Rs.574 crore was proposed to be invested for expansion and starting of new units of public sector undertakings this year.

In an article released for publication, the Minister said it was for the first time in three decades that fresh investment was being made in the public sector. The public sector was being strengthened at a time when the Centre was divesting equity in public sector undertakings.

Mr. Karim said funds for investments were being raised through budget provisions, using reserve funds of profit making units and loans. More than Rs.100 crore was being provided by Kerala Minerals and Metals Limited (KMML) and Malabar Cements Limited for funding projects of other companies. Half of this would be treated as equity in new units and the balance as loan. Besides, KMML would be carrying out its own expansion projects. This year it would spent Rs.158.70 crore for the purpose. It had drawn up plans costing Rs.550 crore for the coming year.

He said reserve funds of KMML had come down during the previous United Democratic Front (UDF) government rule owing to misuse. The government had ordered a vigilance enquiry into the plunder.