Govt's Rs 67-cr booster shot for sick PSUs

Govt's Rs 67-cr booster shot for sick PSUs

The decision to this effect was taken by the Cabinet Committee on Economic Affairs (CCEA) at its meeting chaired by the Prime Minister.

The amount of Rs 67.72 crore sanctioned by the CCEA would cover liquidation of statutory dues like provident fund, gratuity, pension, Employees State Insurance and bonus and salary and wages from October 2009 to December 2009.
The three PSUs in Karnataka, which would receive assistance through non-Plan budgetary support, include the HMT Limited, the HMT (Watches) and the Tungabhadra Steel Products Limited (TSPL). The HMT Limited will receive assistance to the tune of Rs 4.39 crore while HMT Watches and TSPL would get Rs 14.69 crore and Rs 60 lakhs respectively.

The other Central PSUs which would receive assistance include the Hindustan Cables Limited (Rs 23.94 crore), the Hindustan Photo Films Limited (Rs 3.45 crore), the Nepa Limited (Rs 5.46 crore) and the Scooters India Limited
(Rs 10.93 crore).

Revival and closure of these companies is yet to be finalised except in the case of HMT Bearing Limited, the Cabinet paper said. In view of this it is being considered essential that the interim financial support from the government be provided so that the operations of the companies may not be affected.

Non-settlement of these liabilities had been causing serious hardship not only to the employees but also adversely affecting the day-to-day operations of the companies resulting in further deterioration of their performance, the Cabinet paper said. Payment of outstanding dues of salary and wages would mitigate the hardship of the employees thereby motivating them for better output and prepare them to achieve the goal of revival and restructuring for the company.