The Cabinet Committee on Economic Affairs (CCEA), on Thursday, approved non-plan budgetary support of Rs.116.86 crore for the payment of statutory dues such as provident fund, gratuity, pension, employees state insurance and bonus as well as salaries and wages at eleven sick or loss-making Central public sector enterprises (CPSEs) under the Department of Heavy Industry.
These dues will be paid for the period April 1 to August 31 to the staff of Hindustan Cables, HMT Machine Tools, HMT (Watches), HMT (Chinar Watches), Nagaland Pulp & Paper, Triveni Structurals, Tungbhadra Steel Products, Nepa, HMT Bearings, Hindustan Photo Films and Tyre Corporation of India.
The government has not yet finalised the revival/closure plans of Hindustan Cables, Triveni Structurals, HMT (Watches), HMT (Chinar Watches), Hindustan Photo Films and HMT Machine Tools, an official release said.
It recently approved revival plans of Nepa and Nagaland Pulp & Paper Co. HMT Bearings and Tungbhadra Steel Products have not yet proposed revival plans. In the case of Tyre Corporation of India, the government is in the process of disinvesting its shares.
“It was considered essential that the interim financial support from the government be provided so that the operations of these companies are not affected,” said the release. “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.”
