The dues will be paid for the period between September 1, 2013 and March 31, 2014.
The statutory dues include provident fund, gratuity, pension, employees state insurance and bonus. The non-plan budgetary support of Rs 287.67 crore will be provided to the 11 sick/loss-making CPSEs that fall under the Department of Heavy Industry.
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"Payment of outstanding dues of salary and wages would mitigate the hardships of the employees. The payment would also motivate them for giving better output and prepare them to achieve the goal of revival/re-structuring of these companies. In addition, clearance of outstanding statutory dues would result in fulfilment of statutory obligations," an official release said.
The loss-making / sick central public sector enterprises (CPSEs) include Hindustan Cables; HMT Machine Tools; HMT (Watches); HMT (Chinar Watches); Nagaland Pulp and Paper Co.; Triveni Structural; Tungbhadra Steel Products; Nepa; HMT Bearings; Hindustan Photo Films; and Heavy Engineering Corporation.
The decision was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi here.