Private sector-friendly Govt to shut down Tungabhadra Steel

Government has decided to close ailing Tungabhadra Steel Products Ltd by offering a voluntary retirement scheme (VRS) to remaining 72 employees. 

The decision regarding closure of Tungabhadra Steel was approved at a meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi last evening, sources in the Heavy Industry Ministry said.

"An attractive VRS package at 2007 pay scale is being offered to the 72 employees of Tungabhadra Steel, who were earlier drawing salary as per 1992 pay scale. "Tungabhadra Steel has around 90 acre of land and heavy machinery and equipments, which will be auctioned. 

We have also negotiated with the bank for the outstanding amount including Rs 15.28 crore principle and 17.9 crore interest that the company owed to it. The bank has agreed to waive the interest amount of Rs 17.9 crore," a senior official said.