The Kerala government has given "in principle approval" for taking over the profit-making Palakkad unit of Instrumentation Ltd subject to the assessment of the assets and liabilities.
"A request was made to Government of Kerala (GoK) to consider the option of taking Palakkad Unit of Instrumentation Limited (IL). GoK has given 'in principle' approval for taking over Palakkad unit of IL subject to assessment of assets & liabilities," Minister of State for Heavy Industries and Public Enterprises Babul Supriyo said in a written reply to the Lok Sabha.
The Minister informed that the modalities for takeover of Palakkad Unit of IL by the Kerala government are being worked out by a committee with representatives of state government, central government and Instrumentation Ltd.
The Centre had earlier requested the Kerala and Rajasthan governments to take over the company's units located at Palakkad and Kota respectively. While the Kota unit of Instrumentation Limited has been in the red for many years, the Palakkad unit has been making profits.
Employees of the Palakkad unit have been demanding that the government should either delink the profit-making unit from its loss-making mother unit at Kota in Rajasthan or merged with a profit-making PSU.
The government had earlier approved hiving off profit-making Rajasthan Electronics and Instruments Limited (REIL) from its parent company Instrumentation Ltd and turning it into an independent central public sector enterprise (CPSE) under the Department of Heavy Industry.
