Employees of 10 ailing public sector companies, including Scooters India and Hindustan Cables, will get outstanding salaries and other dues for three months through March, 2011.
The Cabinet Committee on Economic Affairs (CCEA) today approved Rs 59.72 crore for payment of statutory dues, salaries and wages of the staff of the 10 Central Public Sector Enterprises (CPSEs), an official release said.
"Payment of outstanding dues of salary/wages would mitigate the hardship of the employees thereby motivating them for better output and prepare them to achieve the goal of revival/restructuring for the company," it said.
Following the decision, employees of Hindustan Cables, HMT, HMT (Watches), HMT (CW), Nagaland Pulp and Papers, Triveni Structurals, Tungbhadra Steel Products, Nepa, Scooters India and HMT Bearings, would benefit.
Revival or closure of these companies is yet to be finalised.
"Therefore, it was considered essential that the interim financial support from the government be provided, so that the operation of these companies will not be affected," the statement added.
Non-settlement of the liabilities had been causing hardship not only to the employees of the firms but also affecting the day-to-day operation of the CPSEs resulting in further deterioration of their performance, it said.
Initially in (May/June, 2004) there were 24 CPSEs which were defaulting in payment of wages/salaries, now this number has come down to 10 due to restructuring efforts.
