The government is likely to consider tomorrow a proposal for hiving off profit-making Rajasthan Electronic and Instruments Ltd from Instrumentation Ltd into an independent central public sector enterprise.
"It has been proposed to delink REIL from Instrumentation Limited, Kota, as the latter has been incurring losses. It will pave the way for conversion of REIL into a CPSE under the Department of Heavy Industry by transferring entire shareholding of IL to Government of India," a senior official told PTI.
The Union Cabinet is likely to take a decision on the proposal tomorrow, the official added.
REIL is a joint venture between Rajasthan State Industrial Development & Investment Corporation (RIICO) and Instrumentation Limited, Kota, with 49 per cent and 51 per cent ownership respectively.
The Kota unit has been in the red for many years.
Last year, employees of the Palakkad unit of Instrumentation Limited which too has been making profits, had met Prime Minister Narendra Modi demanding that the unit either be given an independent status or merged with a profit-making PSU.
