Hindustan Cables to be shut

Cabinet has also approved strategic sale of Bharat Pumps and Compressors

GN Bureau | September 29, 2016


#Hindustan Cables   #Bharat Pumps   #cabinet   #sick PSUs  

 The government has given its nod for closure of sick public sector company Hindustan Cables that has stopped output since 2003. It has also approved strategic sale of Allahabad-based Bharat Pumps and Compressors. It will give an outlay of more than Rs 4,800 crore to pay statutory dues to these firms’ employees and creditors.

The Cabinet Committee on Economic Affairs (CCEA) also granted ‘in principle’ approval for strategic disinvestment of the company that will be carried out at a later stage, according to a news report published in The Hindu.
 
Rs 111.59 crore loan would be used to settle outstanding statutory dues payable to its retired employees such as provident fund and gratuity as well as dues payable to the Central Industrial Security Force.
 
Also, the cabinet approved the closure of Hindustan Cables by offering a golden handshake to its employees and Rs 305 crore one-time settlement to a consortium of its lenders led by State Bank of India. In all, the centre has agreed to bear Rs 4,700 crore to fund the unit’s closure, of which cash infusion will be Rs 1,309.90 crore and non-cash infusion of Rs 3,467.15 crore whereby the government’s loan and interest dues pending on the company’s books, would be converted to equity.
 
According to an official statement, “There is no production activity in the company since January 2003. Due to non-payment of salary and wages, it is very difficult for the employees to survive...With the present time bound closure of the company, the valuable assets of the company will be available for other optimum utilisation.”
 
As per its guidelines, public sector firms were to be categorised into strategic or non-strategic and ministries were to prescribe their revival or restructuring strategies. The department has stressed that the Centre has decided on an uniform policy for offering voluntary retirement to workers of firms that can’t be revived and modalities for disposing off their assets, the report added.
 

Comments

 

Other News

Stories you must read over the weekend

Joseph A Cannataci is the UN’s first and current special rapporteur for the right to privacy appointed by the Human Rights Council (HRC) in July 2015. His appointment came with growing global concerns about threats to privacy in the digital age where governments and big corporations collect mass da

When Jaitley sparred with Chidambaram

This is what Arun Jaitley had to say:   We want to take action which may either want to have an assault on what is the shadow economy or the parallel economy itself. Let us take this example of what everybody has commented on Section 132. Section 132, in simple,

One country, one tax from July 1

 After an intense seven-hour-long debate in the Lok Sabha, the cabinet gave a nod to the Goods and Services Tax (GST) Bill. A green signal has also been given to the four crucial supplementary bills; Central Goods and Services Tax (CGST) Bill, Integrated GST (IGST) Bill, Compensation GST (compensation

Indian team’s internet access to villages gets global recognition

 A successful effort to take high speed internet to over six lakh Indian villages by an IIT Bombay team failed to get support from the government. But, the same indigenous television white space technology developed by the team has now won Mozilla Corporation’s ‘equal rating innovation cha

DJB unveils Yamuna river project

Delhi Jal Board, in collaboration with University of Virginia on Thursday unveiled the Yamuna River Project with a symposium cum exhibition as a part of the overall effort to map out an expansive, multidisciplinary prescription to clean Yamuna. The discussion opened on the lines of eradicati

UJALA scheme: Over 22 crore LED bulbs distributed

  Over 22 crore LED bulbs have been distributed by Energy Efficiency Services Limited (EESL) under UJALA scheme, union minister Piyush Goyal informed the Lok Sabha.   The minister said that the National LED programme, called Unnat Jyoti by Affordable LEDs for

Video

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter