Government nod for Rs 288 crore payment to staff of 11 ailing CPSEs

NEW DELHI: The government today approved Rs 287.67 crore for payment of statutory dues and salary among others to employees of eleven loss-making central public sector enterprises including Hindustan Cables, HMT Machine Tools and Nagaland Pulp and Paper Co.

The dues will be paid for the period between September 1, 2013 and March 31, 2014.

The statutory dues include provident fund, gratuity, pension, employees state insurance and bonus. The non-plan budgetary support of Rs 287.67 crore will be provided to the 11 sick/loss-making CPSEs that fall under the Department of Heavy Industry.

"Payment of outstanding dues of salary and wages would mitigate the hardships of the employees. The payment would also motivate them for giving better output and prepare them to achieve the goal of revival/re-structuring of these companies. In addition, clearance of outstanding statutory dues would result in fulfilment of statutory obligations," an official release said.

The loss-making/sick central public sector enterprises (CPSEs) include Hindustan Cables; HMT Machine Tools; HMT (Watches); HMT (Chinar Watches); Nagaland Pulp and Paper Co.; Triveni Structural; Tungbhadra Steel Products; Nepa; HMT Bearings; Hindustan Photo Films; and Heavy Engineering Corporation.

The decision was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi here.