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Our Bureau

New Delhi , Oct. 14

THE Government has approved a package worth Rs 517 crore for settling employees' dues and statutory dues in 24 loss-making central public sector units (PSUs) under the Ministry for Heavy Industries and Public Enterprises (MoHIPE).

The amount will be used for liquidating outstanding statutory dues, salaries and wages for the period up to July 2004. The combined losses of these PSUs currently stand at around Rs 1,800 crore.

The Cabinet Committee on Economic Affairs (CCEA), which met here on Wednesday, cleared the proposal. The Cabinet has also increased the ex-gratia payment to the PSU employees who will be opting for voluntary retirement.

Briefing reporters here on Wednesday, the Minister for Heavy Industries and Public Enterprises, Mr Santosh Mohan Dev said, "Payment of salaries of employees of 24 PSUs till July 2004 will start from today and the process will be concluded by Durga Puja. The payment of statutory dues like provident fund of employees of 21 PSUs will be taken up in the first phase."

The Minister added that the statutory dues of employees of three companies — Heavy Engineering Corporation, HMT Bangalore and Hindustan Cables — would be settled in the first phase. Their provident fund dues will be paid by December after the supplementary demand for grants is approved by the Parliament in the winter session.

It has also been decided that out of the 24 PSUs, the Government would consider the closure of seven companies. They are Richardson and Cruddas Ltd, Triveni Structurals Ltd, Tungabhadra Steel Products Ltd, National Instruments Ltd, Bharat Opthalmic Glass Ltd, Hindustan Cables Ltd and Hindustan Photo Films Ltd.

The other 17 companies will be considered for revival. Out of these , the joint venture route will be adopted for the revival of three companies — Andrew Yule and Company Ltd, Bharat Pumps and Compressors Ltd and NEPA Ltd.

The Government will try to revive the other 14 companies through various schemes after the dues are settled. They are Bharat Wagon and Engineering, Bharat Heavy Plates and Vessels, Burn Standard, Braithwaite and Company, Cement Corporation of India, HMT (Holding) Ltd, HMT (MT) Ltd, HMT (B) Ltd, HMT (Chinar) Ltd, Praga Tools, Tyre Corporation of India, Heavy Engineering Corporation, Instrumentation Ltd and HMT (Watches) Ltd.

The Minister said that the Cabinet also approved extending the purchase preference scheme for PSUs, which expired after the second extension in March this year, by another year up to March 2005. According to the scheme, the public sector enterprises will get a 10 per cent purchase preference for procurement in Government projects.

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