Two EOUs accorded public utility service status

To enable the firms function smoothly in line with Make in India initiative

Published - March 30, 2018 10:31 pm IST - HYDERABAD

Two export-oriented, manufacturing facilities for aerospace assemblies and aircraft components on the city outskirts have got a cover against lightening labour strikes with the Telangana government declaring them public utility service for one year under the Industrial Disputes Act, 1947.

The government order, under the Central Act read with A.P. Amendment Act No. 5 of 2011 (adapted by Telangana), comes in the backdrop of requests from the two companies, Tata Sikorsky Aerospace Ltd and Tata Lockheed Martin Aerostructures Ltd. Their facilities are in the export processing zone at Adibatla and 100% export oriented units.

Given the critical nature of the industry, sensitivity and requirements of parts of aircraft for defence worldwide by the OEMs, to whom they supply, the companies had sought public utility service status for their respective facilities. This was to ensure that there was no stoppage of work for delays in processing the purchase orders for export.

Towards enabling the firms to function smoothly and without hindrance in line with the Make in India initiative, the State Industries and Commerce Department had recommended that they be declared public utility service for three years.

Citing the Industrial Disputes Act, 1947, the Commissioner of Labour said 100% export-oriented units may be declared a public utility service. The time-frame for which EOUs and facilities located in EPZs can be declared thus had been extended up to three years, from the earlier six months, under the A.P. Amendment Act No. 5 of 2011.

In its order on March 29, the government said in public interest to avoid sudden disruption of work in the two establishments and in view of the critical nature of their production activities, the two 100% EOUs of TSAL and TLMAL were being declared public utility service, for a period of one year.

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