Burn Standard, the wagon-making behemoth of Indian Railways, which employs 500 people, may shut down. While a committee set up by the National Company Law Tribunal [NCLT] recommended closure, the NCLT had not given its verdict. Sources said the Union Cabinet will take the final decision. The NCLT committee, Resolution Professional, proposed a sum of over ₹400 crore for the voluntary retirement scheme.
The 1781 company in Howrah district of West Bengal was amalgamated with the Indian Standard Wagon Company and renamed as Burn Standard Company Limited. Now, it has two engineering units in Howrah & Burnpur and one foundry unit in Howrah, the company’s website said.
The employees union demanded salary from 1997, when it was revised, according to one of the union members. Another member said Burn Standard still had enough land “which could have been sold” to revive the 237-year-old company.
“But the government has made up its mind to shut it down,” an employee said. NITI Aayog and Indian Railways recommended closure of the heritage company earlier.
