Department of Public Enterprises to seek Cabinet nod for clearance of VRS funds: Anant Geete

NEW DELHI: The Department of Public Enterprises will approach the Cabinet for funds to grant VRS to some 2,800 staffers of five sick central PSUs facing closure in three months, Union Minister Anant Geete today said.

The five CPSEs in question are HMT Bearings, HMT Watches, HMT Chinar Watches, Tungabhadra Steel Products and Hindustan Cables.

Asked about the completion of the closure process, the Minister for Heavy Industries and Public Enterprises Geete replied: "It will take three months. The Cabinet has already given the in-principle approval for their closure.

"Now, we have to send individual proposals relating to VRS of each company to the Cabinet for funds. That should be cleared within three months."

While employees drew salary as per the 1997 pay scale, VRS will be based on the 2007 figure.

Asked about 38 independent director posts lying vacant in 31 CPSEs under the Department of Heavy Industries, Geete said: "All the (38 vacant independent director) posts will be filled within one month."

The minister said he will take up with the Prime Minister Narendra Modi the issue of utilising surplus cash lying idle with PSUs, for which an entity has been formed.

Besides, the government is "mulling formation of a land bank comprising the surplus land with PSUs".

Geete, during his address at the CII conference, also appealed to central public sector enterprises (CPSEs) to adopt one village each under their corporate social responsibility (CSR) mandate, as is being done by Members of Parliament under the Saansad Adarsh Gram Yojana.