You are here: Home » PTI Stories » National » News
Business Standard

Govt clears IL's Kota unit closure, Palakkad unit transfer

Press Trust of India  |  New Delhi 

today approved a proposal to shut down the loss-making Kota unit of Instrumentation Limited and hand over the company's Palakkad division to the The employees of Kota unit will be offered a voluntary retirement or voluntary separation scheme (VRS or VSS) package as per the 2007 pay scale. The Union Cabinet chaired by Prime Minister Modi cleared the proposal, sources said. While the Kota unit of Instrumentation Limited has been in the red for many years, the Palakkad's has been making profit. "The Cabinet has accorded approval to proposal regarding closure of Instrumentation Limited's Kota unit, including a VRS/voluntary separation scheme (VSS) to its employees.

It also gave in-principle nod to transfer of IL's Palakkad unit to the state of Kerala," a senior official told PTI. "While the Kota unit has around 500 employees, the Palakkad unit has over 300 employees," the official said. Union Heavy Industries Minister Anant Geete had earlier written to Rajasthan and governments requesting them to take over the units. Employees of the Palakkad entity had been demanding that the Centre either delink it from its loss-making mother unit at Kota or merge with a profit-making PSU. In February, the had approved hiving off profit-making Rajasthan Electronics and Instruments Limited (REIL) from its parent company Instrumentation Ltd and turning it into an independent central public sector enterprise (CPSE) under the Department of Heavy Industry. REIL was a joint venture between Rajasthan State Industrial Development and Investment Corporation (RIICO) and Instrumentation Ltd, Kota, with 49 per cent and 51 per cent ownership, respectively.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, November 30 2016. 19:23 IST