According to AIR sources, the move is part of the Information and Broadcasting Ministry's organisational re-structural plans.
The local flavoured news bulletins from AIR have been an integral part of the lives of conventional radio buffs in seven districts of north Kerala and Lakshadweep for the last 50 years.
The division, which has an Assistant Director, news correspondent, two news readers and a number of casual staff, broadcasts AIR's state-wide morning news bulletin, attracting the maximum number of listeners with respect to its other programmes.
Both the Assistant Director and the correspondent are Indian Information Service officials.
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"If after the transfer, no fresh appointments are made here, it means the division will be closed down soon," the source who did not wish to be named, said.
The news readers of Kozhikode station would be attached to some other stations as part of the move and the casual staff may lose their jobs, the source said.
"The government's plan is to strengthen the capital news divisions and close down the regional ones across the country," the source said.
He further said there were allegations that the closure was to help private FM stations, for whom the BJP-led NDA government was mulling granting permission to start their own news broadcast.
Set up in the year 1966, the news division in Kozhikode AIR was envisaged to give adequate representation of news from Malabar (north Kerala) region, where there are a large number of tribal and minority pockets.