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Cabinet approves closure of loss-making Burn Standard Company Ltd

Press Trust of India  |  New Delhi 

The today approved the closure of loss-making Limited (BSCL) - a Central Public Sector Enterprise (CPSE) under the Ministry of Railways, a government release said.

The decision was taken in view of the continuous poor physical and financial performance of the company for more than 10 years combined with a low probability of its revival in the future, it said.

The measure would save public funds which could be used for other developmental work, the statement said.

"The government will provide one-time grant of Rs 417.10 crore towards severance packages and for clearing the current liabilities of the company. In addition, an outstanding loan of Rs 35 crore given to the company by the Government of (Ministry of Railways) shall be written off. 508 employees of BSCL will benefit from Voluntary Retirement Scheme (VRS)," the release said.

The Limited was incorporated in 1976 following nationalisation and amalgamation of the Burn and Company and the in 1987 under the (DHI).

The company was referred to the Board of Industrial and (BIFR) in 1994 and declared sick in 1995.

The company continues to be a sick company since then.

The administrative control of the company was transferred from the DHI to the in 2010, as approved by the

The company is engaged in the and repair of wagons and production of

According to its website, the company has two engineering units in and Burnpur, and one foundry unit in Howrah,

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

First Published: Wed, April 04 2018. 22:45 IST