The Hindu Business Line : HPCL unveils VRS package; looks to shed 400 staff

The Rs 51,517-crore company has offered the standard public sector enterprises severance package to its 11,357 employees across the country. The plan will remain open for the next 60 days, a senior company official said.

According to an analyst, the number of people opting for voluntary retirement may be lower than expected now that HPCL is no longer on the Government's disinvestment list.

"We expect 300-400 to accept the VRS," the official said.

HPCL is currently implementing its ERP package, which will lead to the company having surplus manpower once the automation systems are in place.

This could be one of the reasons the company is implementing the VRS in August although the board of directors had approved the scheme in February this year.

"We are educating our people about the new management systems being put in place. We are adopting technology and with it, better means of managing our human resources by training them and trimming the workforce. Competition is changing the way we do business," the official said.

Last year HPCL had proposed to shed about 11 per cent of its workforce by offering VRS to surplus staff.

It had identified about 1,000 surplus employees in non-management category and 250 in management category.

The severance package offered by HPCL is in line with the guidelines of Department of Public Enterprises (DPE).

According to the scheme, people opting for retirement will be paid 60 days' salary for each completed year of service or pay packet for the number of months of service left, whichever is less.

This will be in addition to the normal retirement benefits such as gratuity and provident fund. The salary will consist of basic pay and dearness allowance.