“The Cabinet Committee on Economic Affairs (CCEA) today (Thursday) approved the proposal for providing non-plan budgetary support of Rs 116.86 crore for liquidation of statutory dues (provident fund, gratuity, pension, employees state insurance and bonus) and salary and wages from 01-04-2013 to 31-08-2013 in respect of 11 Central Public Sector Enterprises (CPSEs) under the department of heavy industry," said a government press release. These sick PSUs are...Hindustan Cables Ltd, HMT Machine Tools Ltd, HMT (Watches) Ltd, HMT (Chinar Watches) Ltd, Nagaland Pulp & Paper Co Ltd, Triveni Structurals Ltd, Tungbhadra Steel Products Ltd, Nepa Ltd, HMT Bearings Ltd Hindustan Photo Films Limited and Tyre Corporation of India Ltd. The government statement said that the 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/re-structuring of the companies. It added that the clearance of outstanding statutory dues like PF, gratuity, pension, employees’ state insurance would result in fulfilment of statutory obligations.
The release also said that the revival or closure plans of Hindustan Cables, Triveni Structurals, HMT (Watches), HMT (Chinar Watches), Hindustan Photo Films and HMT Machine Tools were yet to be finalised by the Cabinet. Further, the revival the revival plans of Nepa Ltd and Nagaland Pulp and Paper have recently been approved whereas the revival plans of HMT Bearings and Tungbhadra Steel Products were yet to materialise.
On the disinvestment of Tyre Corporation of India, the release said it is under process.
It was, therefore, considered essential that the interim financial support from the government be provided so that the operation of these companies may not be affected, it added.
It said that non-settlement of these liabilities has been causing serious hardship not only to the employees of the companies but also adversely affecting the day-to-day operation of the companies resulting in further deterioration of their performance.
On September 11, 2013 IPS wrote that employees of 18 sick CPSEs may soon get a pay hike. Among others, the employees of watch-maker HMT Ltd and newsprint manufacturer NEPA may emerge as beneficiaries out of this government intervention. At present, executives and non-unionised supervisors of these CPSEs draw their salaries based either on 1987 or 1992 pay scales. The employees in the profit-making CPSEs, on the other hand, get salaries and other allowances based on 2007 pay scales. The Department of Public Enterprises (DPE) had recently submitted a proposal to the CCEA for considering revision of salaries in the 18 sick CPSEs. At present, executives and non-unionised supervisors of these CPSEs draw their salaries based either on 1987 or 1992 pay scales. The employees in the profit-making CPSEs, on the other hand, get salaries and other allowances based on 2007 pay scales.