IFCI extends VRS tenure

NEW DELHI: IFCI has decided to extend the tenure of its voluntary retirement scheme (VRS) till April 10, as the scheme has failed to elicit the expected response so far.
The scheme was stated to be closed on March 31. Apart from providing more time to employees, this will allow the IFCI board to discuss why employees are not opting for VRS, when they meet during the first week of April.
The board meeting scheduled for the last week of March has been re-scheduled to the first week of April. The employees, on their part, are running a signature campaign to extend the scheme. Even while the government has given its nod for merging IFCI with PNB, the employees have been thinking otherwise. They feel the merger will be stalled as they start working towards its modalities.
There may be some re-thinking on the part of PNB as they get to see the liabilities that IFCI has in its books. As a result, the application for the VRS has been minuscule. The employees union has in turn been suggesting the merger of IFCI with IDBI.
Experts inside the organisation give a different perception. “The application would come only on the last day as they wait for others to apply,� explained an insider.

Following the superannuation of its chairman and managing director V P Singh, IFCI is being run by a board. Vinod Rai, additional secretary, banking division at the finance ministry has been himself overseeing the developments in the Delhi- based FI.
This is the second VRS scheme within a span of six months. The earlier scheme was launched in November ’03. This scheme was launched as a follow-up of the merger announcement with PNB as it has been widely argued that IFCI is over-staffed, especially towards the top management.