Employees get attractive compensation after closing sick CPSEs: Govt

Emphasising workers' interest, minister said VRS is given for them at 2007 notional pay scale

Employees are paid attractive compensation at the time of closure sick central public sector enterprises (CPSEs), Union Minister Anant Geete said on Tuesday.

Emphasising that workers' interests are kept in mind while formulating restructuring plans for sick and loss-making CPSEs, he said that VRS (Voluntary Retirement Scheme) is given for them at 2007 notional pay scale.

As far as the Department of Heavy Industries (DHI) is concerned, the Heavy Industries and Public Enterprises Minister said it has been undertaking appraisal of the status of each CPSE on a case-to-case basis.

"The ones having profitability potential are supported to improve their performance while the chronically sick and loss- making companies are closed down with attractive compensation to the employees," he told the Lok Sabha during Question Hour.

Geete also gave details about the status of closure of eight CPSEs under the DHI — HMT Bearings, HMT Watches, HMT Chinar Watches, Tungabhadra Steel Products, Hindustan Cables, Hindustan Photo Films Mfg Co, HMT (Tractor Division) and Instrumentation Ltd's Kota unit.

Besides, the government has given in-principle approval for the strategic disinvestment or merger of certain CPSEs.

These include 100 per cent disinvestment of Bridge & Roof Co, Scooters India (Lucknow) and Bharat Pumps & Compressors Ltd (Allahabad).

Geete said the units of Cement Corporation of India is to be disinvested "where it is legally permissible to strategic buyer through two-stage auction process".

Further, in-principle approval has been given for merger of Engineering Projects (India) with similarly placed CPSEs.

Another proposal that has received in-principle nod is the disinvestment of 100 per cent shareholding of the CPSE concerned in Hindustan Newsprints Ltd to strategic buyer through two-stage auction process, Geete said.

Members from Kerala protested the Centre's move for disinvestment of Hindustan Newsprints, saying the entity was profitable.

Responding to a query about the issue, Geete said a final decision on the matter has not been taken yet.

Further, he said the department has no information on unrest among the workers on account of their dues.

"There are no reports of labour unrest in the CPSEs/ units under closure functioning under DHI," he added.