Despite the management and employees at the Kochi unit of Hindustan Organic Chemicals Limited (HOCL) joining hands to resume profitable operations, uncertainty looms large over the future of the unit with the Union government deciding to close the parent unit at Rasayani in Maharashtra.
The final decision on the Kochi unit of HOCL was likely to be taken at the next meeting of NITI Aayog, sources said, pointing out that the resumption of profitable operations by the unit might help it earn goodwill though the Union government had said that it would not go in for fresh fund infusion.
Takeover mooted
It was mooted that either the State government or the Bharat Petroleum Corporation Limited (BPCL) take over the unit. But the oil company and Kerala government expressed their inability to do so.
The Kochi unit of HOCL resumed production of phenol, acetone and hydrogen peroxide about three weeks ago with money borrowed from its buyers. The market condition is now good and the unit is able to make a profit. However, there is some uncertainty given the market fluctuations that have been witnessed in the past.
There are about 360 permanent employees as well as contract employees who depend on the Kochi unit. The recent resumption of operations has helped the company management pay salary for a month.
The salaries and other payments have been pending for about 16 months.
Meanwhile, sources said the employees had temporarily withdrawn a protest action before the company, demanding rehabilitation of the HOCL unit. The relay protest action was on for around 168 days. Sources also said they would join hands once again against the possible closure of the unit and expressed the hope that the resumption of profitable production would pave the way for a better future for the unit. The trade unions of employees have reiterated their opinion that the HOCL unit could still be merged with the BPCL Kochi refinery.
