The government on Thursday said it had begun the process of reviving five ailing PSUs and is working on one-time settlement, involving voluntary retirement scheme entailing a cost of Rs.1,000 crore for employees of six state-run units not capable of revival.
“Out of 11 sick PSUs, the process for reviving five has started and these shall be revived. However, the remaining six units, which cannot be revived, we have decided on making a one-time settlement proposal of VRS for the employees of these units.
“The state-run units, which have been identified by the government for revival, include HMT Machine Tools; Heavy Engineering Corporation; NEPA; Nagaland Paper & Pulp Co; and Triveni Structurals,” Union Heavy Industries & Public Enterprises Minister Anant Geete said.
Mr. Geete said the government was working on a one-time settlement proposal for six terminally ill PSUs, which could not be revived, to eliminate higher recurring expenditure.
“Since last several years, we have been paying salaries to all the employees sick PSUs. We have spent Rs.3,000 crore till now on that. Instead of spending more thousand crores on that, it will be better that we spend once and for all. We are making a proposal for one-time settlement costing around Rs.1,000 crore for employees of six PSUs not capable of revival.”
“The six companies which cannot be revived are: Hindustan Photo Films; HMT Bearings; HMT Watches; HMT Chinar Watches; Tungabhadra Steel Products Ltd; and Hindustan Cables. These six companies have employee strength of 3,603,” the Minister said at a press conference to mark the 100 days of the NDA government here.
Mr. Geete also informed that as per the recommendations of the Board for Reconstruction of Public Sector Enterprises (BRPSE), the government/holding companies have approved revival of 48 out of 58 central public sector enterprises (CPSEs) and closure of four out of six CPSEs.
