Carborandum may exit Kerala.

Carborandum Universal, a Murugappa Group company, is considering a roll back of its investment plans in Kerala due to unfavourable industrial conditions in the state.

Addressing a press conference here, its managing director K Srinivasan said the company incurred a huge loss due to the delayed implementation of its new projects in Kerala, besides the withdrawal of overseas joint investors.

The company is facing issues at its Cellaris Re-factories India Private Limited (CRIPL) unit, set up for producing high-temperature resistant products (named Bubble), used in refineries, with the support of overseas investors.

It had so far invested Rs. 30 crore in the project, which is located at the company-owned special economic zone (SEZ), at Kalamaserry. The company claims there had been agitations at the plant on grounds of environmental concerns. However, the plant is yet to begin operations.

Srinivasan said agitations had led to a delay of around 18 months in completing the project. He added foreign investors withdrew from the project due to the inordinate delay. The SEZ is also reeling under crisis because of labour problems, affecting the commissioning of new projects. The company's earlier plan to set up a plant for producing raw materials for making metalised cylinders at the SEZ is now in doldrums.


BS