Move to raise retirement age in PSUs are on revival path

NEW DELHI: As an initiative to nurse back sick PSUs to health, the government is considering to enhance the retirement age of employees to 60, in companies for which revival schemes have been approved.

At present, the superannuation age in sick PSUs is 58 years.

The move to raise the retirement age is in line with the recommendations of the Board for Reconstruction for Sick Enterprises (BRPSE), sources said.

While the government has already increased the superannuation age in some of the companies on the revival path, the decisions were on case-to-case basis. "There were no set principles," an official said.

However, following the BRPSE suggestions to motivate the employees, who are going to play a critical role in the PSUs' revival, a proper policy will be formulated.

The Department of Public Enterprises (DPE) has started working on the proposal, which will require a Cabinet approval.

The units where the revival package has been approved and the retirement age increased to 60, on case-to-case basis, include MECON, Heavy Engineering Corporation and Bharat Pumps and Compressors Ltd.

The idea to enhance the limit in sick PSUs is to bring uniformity in retirement age with profit-making CPSEs, they said.

Of the 62 cases referred by the BRPSE, the government has approved revival in 40 sick units as on July 30, 2010.