The union cabinet on Wednesday gave its nod to delinking profit-making Jaipur based Rajasthan Electronics and Instruments Limited (REIL) from its parent company Instrumentation Ltd. and turn it into an independent central public sector enterprise.
The decision was taken at a meeting of the Cabinet Committee of Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi.
REIL is a joint venture between Rajasthan State Industrial Development and Investment Corp. and the loss-incurring Instrumentation Ltd (IL), Kota, with 49 percent and 51 percent ownership, respectively.
"This will result in conversion of REIL into an independent CPSE with greater autonomy to capitalise on the available business opportunities and freedom to approach capital markets for its expansion," a union public enterprises ministry statement here said.
"Government of India will buy IL shareholding of 51 percent at book value of Rs 77.09 per share, a fair valuation of which comes to Rs.48.16 crore as on March 31, 2015," it added.