The government on Friday approved a Rs 181 crore VRS package for employees of the ailing PSU Hindustan Photo Films based on notional pay scales of 2007.
The decision of the Cabinet Committee on Economic Affairs is expected to provide relief to the employees of the Udhagamandalam-based sick firm and help in their post-retirement rehabilitation. They are currently on the 1987 pay scale.
“The CCEA has approved the proposal for providing non- plan budgetary support of Rs 181.54 crore for VRS (voluntary retirement scheme) at 2007 notional pay scales as one time relaxation of Department of Public Enterprises Guidelines for all employees of Hindustan Photo Films,” an official statement said.
“With the increased cost of living, it is very difficult for the employees to survive and meet their immediate financial obligations,” it said.
Hindustan Photo Films Ltd, which employed over 714 employees as on March 31, 2012, was declared sick by the Board for Industrial and Financial Reconstruction in 1996.
The company, set up in 1960, manufactured polyester based X-ray and graphic arts films and magnetic audio tapes.