Bangalore: After years of dithering, the Karnataka government on July 6, finally decided to close down the ailing NGEF, a premier state owned public sector undertaking (PSU).

The state Cabinet at its meeting on July 6, decided to wind up the PSU and offer voluntary retirement scheme (VRS) to all its 1,000 employees, including those who had been on deputation to other units, Minister for Information, Kagodu Thimmappa told reporters.

He said the government has decided to dispose of the land and other properties of NGEF and utilise the proceeds for clearing outstanding debts.

The government had made vain bid to privitise the unit, by floating global tenders, but could not find takers.

Thimmappa said the Cabinet decided to grant 100 acres of land to software major, Infosys on Sarjapur road to establish its software development unit with an investment of Rs 618 crore.

He said CISCO Systems has been allotted 30 acres of land near Electronic City to set up its unit with Rs 1,305 crore investment.

PTI