India’s federal government on Wednesday approved the closure of Tungabhadra Steel Products Limited, a senior government official said on Thursday, December 24.
He said that recommendations of closure of the company has been submitted by the Ministry for Heavy Industries and the government’s apex decision-making body—Cabinet Committee for Economic Affairs, has given the go ahead to auction all movable and immovable assets of the company and offer voluntary retirement plan to existing workers.
Of the outstanding debt owned by Tungabhadra Steel to banks, the principal amount will be repaid by the government while the outstanding interest accrued over the years was waived by the bankers, he added.
Tungabhadra Steel was set up in 1960 as a joint ventures of provincial governments of Andhra Pradesh and Karnataka but stopped production in 2013 and the closure of the company was decided as the Ministry for Heavy Industries felt various revival options suggested by the company were not viable.