Kerala cabinet decided last week to set up eight new public sector units at a total investment of Rs 125 crore in the state in tune with the LDF government's policy of strengthening the public sector.

Small Industries Development Corporation (SIDCO), KELTRON, United Electrical Limited, Kerala State Textile Corporation and Traco Cables would implement the projects, chief minister V S Achuthanandan told reporters here.

He also said expansion and modernisation of Malabar Spinning and Weaving Mills, Trivandruam Spinning Mills and Kerala Soaps would be taken up at a total outlay of Rs.100 crore. The resources of Kerala Metals and Minerals Ltd would be utilised for the expansion.

According to Industries Department, the new PSUs would be commissinoed by Decemebr 31, 2010.

The new projects include setting up a new machining shop in the premises of Metal Industries Ltd at Shornur at a cost of Rs 12 crores by the Steel Industries and Forging Ltd, department officials said.

United Electricals would start a LCD metre factory at Kuzhalmanatham near Palakkad with an investment of Rs five crores while two tool rooms would be set up by SIDCO at Kozhikode and by Keltron at Kuttipuram at an investment of Rs 12 crores each, considering the demand in the specialised engineering works.

A new unit of Traco Cable Company to manufacture house wiring cale would be started at Thalassery with an investment of Rs 12 crore. A Rs 20 crore Hi-Tech Weaving Factory at Kanur and a Rs 16 crore Textile Mill at Kasargod would be set up, the official said.

A programme to modernise and reopen the closed Komalapuram Mills has also been taken up by the government at a cost of Rs 36 crore.

Besides this, an amount of Rs 25 crore would be invested for expansion of existing PUs, including modernisation of KMML, it was stated.