Abolishment of Licenses for manufacturing energy meters in India, after the year 1991. The Company had to compete with smaller units that started mushrooming throughout the country and that had employee strengths of less than 1/10th of the strength of this company.Higher cost of manufacturing meters in Gujarat compared to those in other states, due to higher cost of electricity and of labour.
The Company made sincere efforts in revival of the Company, some of which included,Inviting other organizations/ parties to take over the operations of the unit.
In the year 2007, the Company has been successful in coming out of this deadlock situation as follows.
In light of the new One Time Settlement (OTS) scheme recommended by the Reserve Bank of India (RBI) for sick Small and Medium sized Enterprises (SMEs), the Company placed its proposal in front of the Syndicate Bank for entering into a OTS with the Bank. Syndicate Bank accepted its OTS proposal.
The Status of the Company shifted from ‘Dormant’ to ‘Active’ in the year 2009.
The Company has also been successful in commencing the pilot production of the lamps with a workforce of 9 employees, as per the MOU signed with the Govt. of Gujarat under the auspices of ‘Vibrant Gujarat’ in the year 2009.