The Kerala Government on 28 April 2010 accorded approval to set up eight new public sector units (PSU) at an investment of about Rs 125 crore and to revive three existing sick units.

The projects are to be implemented by Small Industries Development Corporation (SIDCO), Keltron, United Electrical, Kerala State Textile Corporation and Traco Cables Company.

United Electricals plans to set up a LCD metre factory at Kuzhalmanatham with an investment of Rs 5 crore and a new machining shop at Shoranur at a cost of Rs 12 crore. While two tool rooms are to be set up by SIDCO at Kozhikode and by Keltron at Kuttipuram at an investment of Rs 12 crore each, a new unit of Traco Cable Company to manufacture house wiring cale is to be set up at Thalassery with an investment of Rs 12 crore. A programme to modernise and reopen the closed Komalapuram Mills is to be taken up at a cost of Rs 36 crore. A Rs 20-crore hi-tech Weaving Factory at Kanur and a Rs 16-crore textile mill at Kasargod will also be set up.

The sick PSUs like Malabar Spinning and Weaving Mills, Trivandrum Spinning Mills and Kerala Soaps and Oils are to be revived. The expansion and modernisation of Malabar Spinning and Weaving Mills, Trivandrum Spinning Mills and Kerala Soaps will be taken up at a total outlay of Rs 100 crore.