Railway PSU COFMOW to shut down; employees to be released or redeployed

[ad_1]

COFMOW, a public undertaking based in New Delhi, was set up in 1979 to modernize the workshops of the Indian Railways

Indian Railways COFMOW closed — After the ministry’s announcement, no more tenders shall be sent or opened by COFMOW | (Photo: South Western Railways)

The Ministry of Railways has announced the closure of the Central Organization for Modernization of Workshops (COFMOW) with effect from 1 December.

The decision has been taken “in line with the recommendation of the Ministry of Finance’s economic adviser on the rationalization of state bodies,” the circular from the railway board says. Last year, the center had asked the ministry to rationalize and reduce its obligations.

Read also: First indigenous people produced goods rakes in aluminum introduced in railways

Four decade old PSU

COFMOW, a public undertaking based in New Delhi, was established in 1979 to modernize the workshops of the Indian Railways. Established through funding from the World Bank, COFMOW is credited with helping modernize manufacturing units and workshops for over four decades.

The company has over the years acquired over 22,000 machines to modernize manufacturing and maintenance units at a cost of nearly Rs 6,300 crore.

Following the ministry’s announcement, no more tenders shall be sent or opened by COFMOW. Also, all sanctioned works against which tenders are yet to be finalised, or where no contractual liability exists, will be immediately transferred to the concerned zonal railway offices.

The future of the staff

According to the circular, all contracts, files and documents will be handed over to the concerned zonal railway offices and COFMOW’s non-gazetted posts will be surrendered. The staff will either be released, repatriated or redeployed elsewhere.

As for the officers with COFMOW, they “may be posted elsewhere by concerned Board members, as deemed appropriate”. By November 30, COFMOW’s building and other infrastructure will be handed over to the Secretary Department of the Railway Board.

Also Read: Railways rename trains after Wodeyar and poet Kuvempu; removes Tipu’s name

During the last year, the Railways also decided to shut down the Indian Railways Station Development Corporation (IRSDC) and the Indian Railways Organization of Alternative Fuel (IROAF).

[ad_2]

Source link