Cabinet approves Rs 70 cr for PSU employees' statutory dues

NEW DELHI: Coming to the rescue of employees of 10 central public sector enterprises (CPSEs), CCEA on Tuesday approved non-plan budgetary support of Rs 70.76 crore for liquidation of statutory dues (provident fund, gratuity, pension, employees state insurance and bonus) and salary and wages between January 1, 2010 and September 30, 2010.

According to the government, it was considered essential that the interim financial support from the government be provided so that the operations of the companies will not be affected. "Non-settlement of these liabilities had been causing serious hardship not only to the employees of the companies but also adversely affecting the day-to-day operations of the companies resulting in further deterioration of their performance," it said in a statement.

CCEA also delegated its power to the ministry of heavy industry and public enterprises to sanction budgetary support, through reappropriation from out of the approved non-plan budget outlay, to loss making PSEs which are unable to generate internal financial resources to meet their liabilities towards payment of salary wages to their employees and settlement of statutory dues. This will be subject to the condition that budgetary support will be released for a period of three months at a time keeping a gap of three months from the month of default.