Rs 400 Cr Keltron Revival Package

The government of Kerala is working out a revival package for the ailing state government owned electronics company Keltron. The plans of the government include raising a Rs 400 crore revival fund, diversifying the areas of activities of the company and chalking out an aggressive marketing plan for the company.

Part of the Rs 400 crore fund would be raised from outside agencies and partly from internal accruals. According to sources the state government is in parleys with the Asian Development Bank to raise the required funds in the form of debt to fund the revival package.

"We are in the process of working out the revival fund which is about Rs 400 crore a part of which would be raised by the state government through internal accruals," a senior state government industry ministry source told Business Standard.

 

He also confirmed that the government has recently made a presentation to the Asian Development Bank for a possible fund raising. "The government is not interested in the equity dilution of the company or an equity participation. We are planning to raise fund in the form of debts," he added.

The government is also learnt to be in talks with various global technology leaders for a possible technology transfer agreement with Keltron. "We are trying to bring in technology from other technology leaders to the company. However, this is the second part of Keltron's revival plan," sources pointed out.

"Studies have pointed out that the company has suffered due to obsolete technology. Now with the availability of fresh fund acquiring latest technology is not a problem," he added.

In addition to this, the government is also contemplating diversification of activities of Keltron as a strategy to open new revenue streams for the company.