This Article is From Feb 22, 2013

Government approves Rs 122 crore for clearing dues of 9 public-sector firms

New Delhi:

The government today approved a non-plan budgetary support of Rs 122.65 crore for clearing of statutory dues including salary and wages of nine sick Central Public Sector Enterprises (CPSEs).

"The Cabinet Committee on Economic Affairs today approved the proposal for providing non-plan budgetary support of Rs 122.65 crore for liquidation of statutory dues (provident fund, gratuity, pension, employees state insurance and bonus) and salary and wages from April 1, 2012 to September 30, 2012 in respect of nine CPSEs," an official release said.

Payment of outstanding dues of salary and wages would mitigate the hardships of the employees thereby motivating them for better output and would prepare them to achieve the goal of revival or restructuring of the company, it added.

The nine CPSEs are Hindustan Cables Ltd, HMT Ltd, HMT (Watches) Ltd, HMT (CW) Ltd, Nagaland Pulp & Papers Co. Ltd, Triveni Structurals Ltd, Tungbhadra Steel Products Ltd, Nepa Ltd and HMT Bearings Ltd.

Except HMT Bearings Ltd, the revival of these companies is yet to be finalised, whereas approved revival plan of Nagaland Pulp & Papers Co. Ltd could not be implemented, the release said.

Therefore, it was 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.