Employees of 10 ailing central public sector enterprises (CPSEs), including Hindustan Cables and HMT Ltd, will get outstanding salaries and other statutory dues like PF and gratuity for six months till March 2013.
“The Cabinet Committee on Economic Affairs (CCEA) today approved the proposal for providing non-plan budgetary support of Rs 128.26 crore for liquidation of statutory dues (provident fund, gratuity, pension, employees state insurance and bonus) and salary and wages from 1 October 2012 to 31 March 2013 in respect of 10 CPSEs, under the Department of Heavy Industry,” an official statement said.
The CPSEs are Hindustan Cables Ltd, HMT Ltd., HMT (Watches), HMT (Chinar Watches), Nagaland Pulp & Paper, Triveni Structurals, Tungbhadra Steel Products, Nepa, HMT Bearings and Hindustan Photo Films, it added.
The revival/closure plans of Hindustan Cables Limited, Triveni Structurals, HMT (Watches), HMT (Chinar Watches) and Hindustan Photo Films Limited are yet to be finalised, it said.
The revival plans of Nepa and HMT Ltd have recently been approved, while revival plans of HMT Bearings, Nagaland Pulp and Paper Company and Tungbhadra Steel Products are yet to materialise, the statement said.
“It was, therefore, considered essential that the interim financial support from the government be provided so that the operation of the companies may not be affected. Non-settlement of these liabilities has been causing serious hardship not only to employees of the companies but also adversely affecting the day-to-day operation of the companies resulting in further deterioration of their performance,” it said.
Source: The Economic Times