The imbroglio over the future of profit-making Palakkad unit of Central public sector enterprise Instrumentation Limited has deepened further, with Chief Minister Pinarayi Vijayan writing to Union Minister for Heavy Industries and Public Enterprises Anant G. Geete, clarifying that the State government can take over the unit provided the Ministry clears pending salary arrears and other liabilities to the existing workforce.
In his letter, the Chief Minister urged the Union Minister not to delay the process of clearing arrears any further. Interestingly, it was the Ministry that had urged the State government to take over the unit, saying that there was no other alternative to prevent its closure. The loss-making mother unit of the company at Kota in Rajasthan has already been wound up.
The takeover process was derailed six months ago after the Union Ministry turned non-committal on clearing pending salary arrears and other liabilities to the workforce. Moreover, the Bharatiya Mazdoor Sangh (BMS) had come out in the open against the move three months ago, demanding that the unit be retained as a central PSU.
BJP State general secretary K. Surendran had said that the takeover would prove detrimental to the interests of the workforce. According to him, party State president Kummanam Rajasekharan had approached Prime Minister Narendra Modi, seeking steps to retain the unit as a Central PSU. However, trade unions affiliated to the CPI(M) and the Congress are in favour of the takeover. Meanwhile, the workers are a worried lot as their salary arrears and other pending benefits are yet to be disbursed.
Earlier, the Union Ministry had claimed that it had decided to pass the baton to the State government after its failure to find a suitable option to retain the unit as a Central PSU.
Before urging the State to take over the PSU, the Centre had considered various options, including a joint venture, PPP model, and merger with Bharat Heavy Electricals Limited, to keep the Palakkad unit functional.
The unit has 320 staffers. Around ₹40 crore is required to clear salary arrears and other benefits due to the staff.