CCEA approves payment of statutory dues for loss making CPSEs
New Delhi, Feb 21 : The Cabinet Committee on Economic Affairs (CCEA) Thursday approved the proposal for providing non-plan budgetary support of Rs.122.65 crore for liquidation of statutory dues (Provident Fund, Gratuity, Pension, Employees State Insurance and Bonus) and salary and wages from Apr 1, 2012 to Sept 30, 2012 in respect of nine Central Public Sector Enterprises (CPSEs) under the Department of Heavy Industry, here.
The CPSEs are Hindustan Cables Ltd., HMT Ltd., HMT (Watches) Ltd., HMT (CW) Ltd., Nagaland Pulp & Papers Co. Ltd., Triveni Structurals Ltd., Tungbhadra Steel Products Ltd., Nepa Ltd. and HMT Bearings Ltd.
CCEA noted that revival of these companies is yet to be finalized except in the case of HMT Bearing Ltd, and Nagaland Pulp & Papers Co. Ltd., whose approved revival plan could not be implemented.
The Committee therefore considered essential that the interim financial support from the Government be provided so that the operation of these companies may not be affected.
Non-settlement of these liabilities has been causing serious hardship not only to the employees of the companies but also adversely affecting the day-to-day operation of the companies resulting in further deterioration of their performance, CCEA informed.
Payment of outstanding dues of salary and wages would mitigate the hardships of the employees thereby motivating them for better output and would prepare them to achieve the goal of reviving/restructuring of the company.
In addition clearance of outstanding statutory dues (Provident Fund, Gratuity, Pension, Employees State Insurance) would result in fulfillment of statutory obligations.