Andrew Yule's electrical unit in Kolkata likely to shut shop by September

Heavy engineering PSU Andrew Yule & Company has decided to close down its electrical unit located at Mayurbhanj area in South Kolkata, due to non- viability, a source said on Monday.

The closure process is likely to take two months, but is subject to approvals from the authorities concerned.

''At a recent board meeting, it has been decided to shut down the Kolkata electrical manufacturing unit as it is making losses and operations are unviable,'' the top company source said.

The losses were reportedly to the tune of around Rs 20 crore per year, he added.

The electrical division, mainly engaged in the production of switchgears and transformers, employs close to 250 workers and all of them would be given either voluntary separation scheme or voluntary retirement scheme, he said.

Funds for the schemes would be raised from internal resources.

The company, which also manufactures tea and other engineering products, has another electrical unit in Chennai, which will continue to be operational, the source said.

The development comes weeks after state-owned Steel Authority of India said it would dismantle its raw material division headquarters in Kolkata.