The newly appointed board of ill-fated Infrastructure Leasing and Financial Services (IL&FS) plans to cut two-thirds of the jobs across the group as part of its initiatives towards rationalised manpower with a view to reduce costs.
Uday Kotak-led board plans to bring down total manpower of the IL& FS Group by approximately 65 per cent and wage cost by 50 per cent respectively, in two phases. In a progress report to the National Company Law Tribunal (Mumbai), the board said that it has assessed and undertaken various steps to reduce the wage bill of the IL&FS Group which are expected to result in savings across various entities within the group.
"Phase I will contemplate initiatives like salary rationalisation of employees, separation of superannuated consultants which have been executed, which are likely to yield net savings of approximately Rs 100 crore annually," the company said in a filing to the Bombay Stock Exchange.
"Phase II initiatives including Talent Restructuring, Amalgamation of Roles & responsibilities are under process. These steps will yield an approx 50 per cent savings in the wage bill of the IL&FS Group," said the debt-ridden company in its second progress report.
The government had formed banker Uday Kotak-led board after NCLT approved a resolution of the liquidity crisis at IL&FS in wake of its bulky debt of Rs 91,000 crore.
In a separate development, the National Companies Law Tribunal (NCLT) today passed an interim order asking nine directors of the crisis-hit IL&FS including Ravi Parthasarathy and Hari Sankaran, Arun K Saha to disclose details of their movable and immovable assets, bank account, jointly held assets in next three weeks.
On Monday, IL&FS appointed former L&T Group veteran, N Sivaraman, as Chief Operating Officer, who will be responsible for the day-to-day operations and provide hands-on leadership and oversight to the group's asset-monetisation efforts.
Edited by Chitranjan Kumar