The unions also demanded that the state government should accept the Centre's proposal to acquire the Kota unit.
Instrumentation Ltd (IL) which makes telecom switching system, annunciations, railway signaling system, defense products and nuclear power and thermal control products was declared sick in 1993 and since then continuously making losses despite government efforts to revive the same.
It has has two units at Kota and Palakkad (Kerala).
Union Minister Anant Geete this week said that his ministry will send a proposal to the Union Cabinet regarding closure of the Kota unit, which has 600 employees.
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He said that labour unions are meeting on March 20 to devise a strategy for saving the unit.
Leaders of other labour unions Shakeel Ahmed, Harilal, R K Goswami of SITU, Rakesh Galav of Medical Representative Union also addressed the protest rally and demanded the state government to take over the unit.
Meanwhile Congress workers, led by state general secretary Pankaj Metha demonstrated in front of IL Unit gate.
However, a section of engineers working at the Kota unit who also claim not to be part of any labour union, said that the unit cannot be revived due to mismanagement and non willingness of workers to get the company into profit making productive mode.
Meanwhile, Kota MP Om Birla told reporters that he would speak to Prime Minister Narendra Modi on the issue and would request for the measures of its revival. The state government is not in a position to take over the company and to shell out its existing liabilities, he added.
The liabilities would be met out by selling the surplus land of IL unit, the minister said.
While the Kota unit of Instrumentation Limited has been in the red since many years, the Palakkad unit has been making profits. Geete had earlier written to Rajasthan and Kerala governments requesting them to take over the units.
The Kerala Government has shown interest in taking over the Palakkad unit but no final decision has been taken on that, Geete said this week. The Palakkad unit has 350 workers.