Govt to close down 2 fertiliser companies

NEW DELHI: The government has decided to close down Hindustan Fertilizer Corporation Ltd (HFC) and Fertilizer Corporation of India (FCI) excepting its Jodhpur Mining Organization (JMO), Lok Sabha was informed on Monday.
In a statement in the House, Minister for Chemicals and Fertilizers, S S Dhindsa said this decision was taken after the Union Cabinet considered the revised comprehensive rehabilitation proposals in respect of the remaining units of HFC and FCI based on recommendations of Group of Ministers appointed for the purpose.
He said the Board for Industrial and Financial Reconstruction (BIFR) had declared these two as sick and ordered their winding up on November two, 2001 for FCI and December 12, 2001 for HFC.
Both companies filed appeals against these orders of BIFR before the Appellate Authority for Industrial and Financial Reconstruction (AAIFR). The appeal of FCI has been dismissed by AAIFR while that of the HFC which came up for hearing on November 15 has been reserved for orders by AAIFR, the Minister said.
He said these two companies while implementing the Government decision have offered Voluntary Separation Scheme (VSS) to its employees. An estimated Rs 691 crore is required for offering VSS to 10,596 employees of these two PSUs, which is being met entirely from the budgetary support by the Government.