Benefits to Employee of Closed CPSEs: Lok Sabha Q&A

GOVERNMENT OF INDIA

MINISTRY OF HEAVY INDUSTRIES AND PUBLIC ENTERPRISES

LOK SABHA

UNSTARRED QUESTION NO 1287

ANSWERED ON 28.07.2015

1287 . R. VANAROJA

Will the Minister of HEAVY INDUSTRIES AND PUBLIC ENTERPRISES be pleased to state:-

(a) whether the Government has initiated action for closure of five sick units and the process is likely to be completed in the next two-three months and if so, the details thereof;

(b) whether the cost of closure of these units is estimated to be around Rs. 1400 crore and their assets are estimated to be worth Rs. 22000 crore, if so, the details thereof;

(c) whether the Government has offered a voluntary retirement scheme to employees of these PSUs, if so, the details thereof including pay scale offered and VRS package given; and

(d) whether the employees have agreed to the VRS proposal mooted by the Government and if so, the details thereof?

MINISTER OF STATE IN THE MINISTRY OF HEAVY INDUSTRIES AND PUBLIC ENTERPRISES (SHRI G.M. SIDDESHWARA)

(a) to (d) Yes, Madam. The Government has initiated action for closure of five Central Public Sector Enterprises (CPSEs) namely Hindustan Cables Ltd., Tungabhadra Steel Products Ltd., HMT (Watches) Ltd., HMT (Chinar Watches) Ltd. and HMT (Bearings) Ltd. and offer of attractive Voluntary Retirement Scheme (VRS) to their employees on 2007 notional pay scale in relaxation of Department of Public Enterprises (DPE) guidelines. The movable assets like Plant and Machinery, furniture and fixture, vehicles etc. would be either auctioned or transferred to holding/subsidiary/associate CPSEs or Government/Government controlled Body. Immovable assets i.e. land and/ or buildings would be transferred to Central/ State Government or Central/ State Government entities/ PSUs only, depending on the terms of lease/ ownership of concerned CPSE.

Source: LokSabha.nic.in