PF dues not part of textile industry revival package

NEW DELHI: The government may be chalking out a substantial Rs 2,000-odd crore revival package for the ailing textile sector, but none of that money is designed for paying back PF dues owed to workers.
Out of a total of Rs 315-odd crore owed in all the Employees Provident Fund Organisation up to July 31 this year — this is the sum of PF dues to workers from several hundred textile mills in the central public sector — the textile sector accounts for well over 50%. The dues from the textile sector, which is the largest single sector from which dues are owed, accounts for a whopping Rs 175-odd crore in all.
Among the states, textile units in the central public sector in West Bengal owe the most money to the EPFO. The rest of the Rs 145-odd crore owed in dues is mainly owed by the industry sector.
All this notwithstanding, however, the Centre’s plans for a revival package to select units in the sector — roughly estimated at a total of Rs 2,000 crore with the burden on the government pegged approximately at Rs 500 crore and the FIs taking a hit of around Rs 800 crore once interest rates on loans are reduced to 12% based on recommendations of the N K Singh panel — is aimed primarily at technological upgradation and for retiring high cost loans from the sector.
The revival package, targetted only at those units in the textile sector that meet the criteria laid down by the N K Singh panel, will in fact bypass the entire issue of workers’ dues owed from central public sector units to the EPFO as part of their contribution to workers’ welfare.Textile is not the only sector that has earned itself a priority spot in the list of big time defaulters . Among the state PSUs, it is in fact the transport sector that has defaulted on the most money to workers as its share of PF dues.