Take Over of Palakkad Unit of Instrumentation Limited

Speed Post News Network

New Delhi  : The Union Cabinet had on November 30, 2016, approved the closure of the Kota Unit of Instrumentation Limited and had accorded in principle approval for the transfer of Palakkad Unit of Instrumentation Limited to the Government of Kerala (GoK).

The GoK had constituted a High Level Committee headed by the Chief Secretary to work out the modalities of the transfer and Department of Heavy Industry was represented on the Committee. Based on its deliberations, a tripartite Memorandum of Understanding (MoU) was signed by the Government of India, Department of Heavy Industry (DHI), Government of Kerala, Department of Industry and the Instrumentation Limited, on November 16, .2018, defining the modalities of transfer of Palakkad Unit to the Government of Kerala as a going concern, with the approval of the competent authority.

After the signing of the MoU, while the required assessment of Net Asset Value (NAV) of the Palakkad Unit was underway, it was learnt that the High Level Committee had not taken into consideration the value of land owned by the Palakkad Unit, measuring 566.30 acres which was assigned on registry to Instrumentation Limited, for the establishment of Precision Instrumentation Project at Pudussery, Kerala, under the Rules of Assignment of Government Land for Industrial Purposes on March 30, 1964, which has material bearing on the transfer modalities. The value of this land owned by Instrumentation Limited has not yet been assessed.

This information was given by the Minister of Heavy Industries & Public Enterprises, Prakash Javadekar, in a written reply in the Rajya Sabha on December 9, 2019, according to a PIB release.