Sick PSUs get budgetary support for dues, salary payments

The government Thursday said it will provide Rs.116.86 crore financial aid to 11 loss making or sick central public sector enterprises to enable them pay salary and statutory dues.

The Cabinet Committee on Economic Affairs chaired by Prime Minister Manmohan Singh gave green signal to the proposal. The aid will be provided under non-plan budgetary support.

The 11 central public sector enterprises that will benefit from the proposal are Hindustan Cables, HMT Machine Tools, HMT (Watches) Ltd., HMT (Chinar Watches) Ltd., Nagaland Pulp & Paper Company, Triveni Structurals, Tungbhadra Steel Products, Nepa Ltd., HMT Bearings, Hindustan Photo Films Limited and Tyre Corporation of India Ltd.

All these firms are under the federal department of heavy industry.

"Payment of outstanding dues of salary and wages would mitigate the hardships of the employees thereby motivating them for better output and prepare them to achieve the goal of revival or restructuring of the companies," an official statement released after the cabinet meeting here said.

"In addition, clearance of outstanding statutory dues (Provident Fund, Gratuity, Pension, Employees State Insurance) would result in fulfilment of statutory obligations," it said.