Travancore Cements resumes operations with three-phase restoration plan

Travancore Cements Limited (TCL), a cash-strapped public sector unit under the Kerala government, has resumed operations after a month-long hiatus and unveiled a three-phase restoration plan to stabilise the company, which has long struggled to remain solvent.

According to company officials, production of white cement and wall putty has restarted using working capital sanctioned under special direction from Industries Minister P. Rajeeve. As part of resuming manufacturing activities, 1,000 tonnes of raw materials are being brought to the company.

“About 540 tonnes of raw materials have already arrived, which has helped save ₹10 lakh in deferred costs. The current plan is to increase white cement production gradually, targeting an average monthly output of 2,000 tonnes,” said a company official.

To support this, work has begun on enhancing the clinker unit’s capacity, producing value-added products using white cement and restoring the drydock under company ownership. Officials said the restoration work is expected to be completed before September this year.

The third phase will include plans for clay calcination, manufacturing green cement and other diversification programmes in association with the Board of Public Sector Transformation. These activities will commence upon receiving ₹23.07 crore from the sale of company property in Kakkanad.

Recently, Kerala High Court cleared the legal hurdles allowing TCL to liquidate its landed assets. Facing severe financial crisis, the company had decided to sell 2.79 acres in Vazhakkala near Kakkanad , besides 1.81 acres at Chempu. While the company initially expected to generate a minimum of ₹40 crore from the sale, it received only ₹23.07 crore after four rounds of tendering.

Established in 1946, TCL remained profitable until 2000 but was severely affected by the ban on dredging clams in Vembanad Lake, its key raw material source. The company’s woes were compounded by delays and diversions in utilising State government funds allocated over the years.