Decks cleared for reopening of BHEL at Kasaragod in Kerala

Decks have been cleared by the Central government for handing over the Bharat Heavy Electricals Limited (BHEL) factory at Kasargod to the Kerala government. After two years of persistence pleading with the Central government to hand over the Bharat Heavy Electricals Limited, the Centre has finally given its nod. The factory, which was locked down after incurring losses, by the Central government will be reopened on November 1.

Kasaragod (Kerala):Decks have been cleared by the Central government for handing over the Bharat Heavy Electricals Limited (BHEL) factory at Kasargod to the Kerala government. After two years of persistence pleading with the Central government to hand over the Bharat Heavy Electricals Limited, the Centre has finally given its nod. The factory, which was locked down after incurring losses, by the Central government will be reopened on November 1, on the formation day of the Kerala State, bringing hope and smile to the faces of hundreds of employees, who were struggling to eke out their livelihood.

The Kerala government would spend Rs 77 crore, including Rs 43 crore on renovation and Rs 34 crore towards salary arrears. Industries Department Principal Secretary said they are hopeful of bringing the factory back onto the profit zone.

A sub-committee has been formed to decide on the disbursal of salary arrears of employees and the committee would submit its report in the next 15 days. All the Employees' Unions have welcomed the move to reopen the factory that has been locked down for the last two years.

The Kerala government had established this factory Kerala Electrical and Allied Engineering Company Limited at Badiradukka near Megral Puthur in Kasaragod district in 1990. The then Chief Minister EK Nayanar had inaugurated this factory, which was then merged with the Bharat Heavy Electricals Limited in 2011. As per the merger agreement, BHEL held 51 per cent shares and the Kerala government 49 per cent. The factory produced alter meters for the Indian Railways and Defence Department.

It is alleged that though the company got excellent orders, there was little support from BHEL in meeting the demands. When the company, which was till then operating profitably, started incurring losses. When the losses started mounting up, BHEL decided to sell off their shares and the LDF government expressed its willingness to buy back the shares. The Kerala government has approached the Centre expressing its willingness to take over the loss-making unit in 2019. Though the Centre agreed in principle, a formal decision to hand over was announced on May 11, 2021.

In these two years, all the 150 employees of this company had to stage protests demanding their salary arrears and reopening the factory. These employees struggled to make both ends meet with no source of alternative revenue.