Govt to revive 5 ailing PSUs; plans VRS for employees of other units

New Delhi: The government today said it hasbegun the process of reviving five ailing PSUs and is workingon one-time settlement involving voluntary retirement schemeentailing a cost of Rs 1,000 crore for employees of sixstate-run units not capable of revival.

“Out of 11 sick PSUs, process for reviving 5 has startedand these shall be revived. However, the remaining six units,which cannot be revived, we have decided on making a one-timesettlement proposal of VRS for the employees of these units.

“The state-run units which have been identified by thegovernment for revival include HMT Machine Tools Ltd; HeavyEngineering Corporation; NEPA Ltd; Nagaland Paper & Pulp CoLtd; and Triveni Structurals,” Union Heavy Industries & PublicEnterprises Minister Anant Geete said.

Geete said the government is working on a one-timesettlement proposal for six terminally ill PSUs which cannotbe revived, to eliminate higher recurring expenditure.

“Since last several years, we have been paying salaries toall the employees sick PSUs. We have spent Rs 3,000 crore tillnow on that. Instead of spending more thousand crores on that,it will be better that we spend once and for all. We aremaking a proposal for one-time settlement costing around Rs1,000 crore for employees of 6 PSUs not capable of revival.”

“The six companies which cannot be revived are HindustanPhoto Films Ltd; HMT Bearings Ltd; HMT Watches Ltd; HMT ChinarWatches Ltd; Tungabhadra Steel Products Limited; and HindustanCables Ltd. These 6 companies have employee strength of3,603,” the Minister said at a press conference to mark the100 days of NDA government here.

Geete also informed that as per the recommendations of theBoard for Reconstruction of Public Sector Enterprises (BRPSE),the government/holding companies have approved revival of 48out of 58 central public sector enterprises (CPSEs) andclosure of four out of six CPSEs.

PTI