NEW DELHI: Government on Wednesday approved a proposal to shut down the Kota unit of Instrumentation Limited that has been in the red for many years and hand over company’s Palakkad division to the Kerala government.
The employees of Kota unit will be offered a voluntary retirement or voluntary separation scheme (VRS or VSS) package as per the 2007 notional pay scale, amounting to Rs 438 crore. While the Kota unit has been making loss for many years, Palakkad’s has been making profit.
“The Kota unit has around 500 employees, while the Palakkad unit has over 300 employees,” a senior government official said. Employees of the Palakkad entity had been demanding that the Centre either delink it from its loss-making mother unit in Kota or merge with a profit-making PSU.