The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the closure of Burn Standard Company Ltd (BSCL) - a central public sector enterprise (CPSE) under the Railways Ministry.
The government would provide one-time grant of Rs 417.10 crore towards severance package and for clearing the current liabilities of the beleaguered company.
In addition, outstanding loan of Rs 35 crore given to the company by the centre would also be written off, an official statement said.
"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," it said.
According to the centre, 508 employees of BSCL will benefit from Voluntary Retirement Scheme.
--IANS
bdc/vd
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
RECOMMENDED FOR YOU