The offer, which also includes an early bird incentive of Rs 15,000 to staffers, will be available for a period of 10 days. The early bird incentive for workers is Rs 10,000. To receive the early bird incentive, employees have to apply within four days from the announcement of the VRS.Sources said that the company offers an amount equivalent to 80 per cent of the present basic plus DA to employees who are over 40 years and with more than 10 year experience. However, the company has put a condition that the VRS payment will be only for a maximum period of 13 years.

Those who are below 40 years have also been permitted to take up the VRS. ``They will get 50 per cent of basic plus DA. Contrary to earlier expectations, many skilled workers are also leaving the company,'' said the sources. They further pointed out that ``the skilled workers are eyeing the better salary package offered by many multinational firms engaged in the same business. The companies who have picked up the trained NGEF employees include ABB Ltd, Siemens, Jyothi and L&T Ltd''.

To part-finance the VRS and to meet the company's working capital needs, NGEF is raising an additional Rs 4 crore as short-term debt from a consortium of banks led by the State Bank of Mysore.

The sick company under the purview of BIFR expects to break even this fiscal. NGEF has achieved its production target during the first quarter of the current fiscal, sources added.

It has reported a total turnover of Rs 208.47 crore for the fiscal ended March 31, 1998. The net loss has come down substantially during the period. NGEF's sales stands at Rs 169.83 crore (Rs 156.35 crore) for 1997-98.

Sources said that the company is also upgrading its manufacturing facility in Bangalore. It has already invested huge amounts to upgrade CNC machines, which were imported.