Centre approves closure of corporation managing forestry in Andamans

The Centre today approved the closure of a corporation involved in developing and managing forestry plantations in the Andaman and Nicobar Islands.
"The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved the closure of the Andaman and Nicobar Islands Forest and Plantation Development Corporation Limited, Port Blair, a central government undertaking, and discharging the liabilities of all the employees," an official statement said.
The closure would help stop unproductive loans to ANIFPDCL in Port Blair from the Government of India and would enable the more productive utilisation of assets, the statement said.
This would be achieved by offering a Voluntary Retirement Scheme (VRS) or Voluntary Separation Scheme (VSS) package to willing employees and by retrenchment under the Industrial Disputes Act, 1947, of those not opting for VRS/VSS.

At present, the corporation has 836 employees.
The closure would be done by infusing funds of Rs 125.72 crore through budgetary support from the Government of India for funding VSS of all employees on 2007 notional pay scales and for discharging other liabilities, the statement said.
There will be a write-off of government loans of Rs. 186.