Union Cabinet approves closure of Burn Standard Company Ltd

Speed Post News Network

New Delhi : The Union Cabinet chaired by PM Narendra Modi has approved the closure of Burn Standard Company Ltd (BSCL),  a Central Public Sector Enterprise (CPSE) under Ministry of Railways.

This decision has been taken in view of the continuous poor physical and financial performance of the company for more than 10 years despite financial assistance and other support provided by government, and low probability of its revival in the future. This measure will save public funds, which are currently being used for loss making BSCL, and can be used for other developmental work, according to a PIB release. The company is engaged in the manufacturing and repair of wagons and production of steel.

The Government will provide one-time grant of Rs 417.10 crore towards severance package and for clearing the current liabilities of the company. In addition, outstanding loan of Rs 35 crore given to the company by Government of India (Ministry of Railways) shall be written off.  The 508 employees of BSCL will benefit from Voluntary Retirement Scheme (VRS).

The Company was referred to Board of Industrial and Financial Reconstruction (BIFR) in 1994 and was declared sick in the year 1995.