Improved VRS package for HVOC staff okayed

The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved a proposal for an improved voluntary retirement scheme (VRS) package for the employees of the sick public sector company Hindustan Vegetable Oils Corporation (HVOC).  

The package is based on the 2007 notional pay scales for the employees of HVOC, an official statement said.

The government assistance will be in the form of a non-plan grant of around Rs 27.56 crore to the firm, it added.

HVOC is a Central Public Sector Enterprise (CPSE) under the Department of Food and Public Distribution in the ministry of consumer affairs, food and public distribution. The employees of HVOC have been adversely impacted due to the sickness of the company. They are in very old-pay scales of 1992.
 

The improved VRS package will give fair amount of compensation to the employees and help them in their post retirement rehabilitation, the statement said.

HVOC was formed in 1984 with the merger of two nationalised companies — Ganesh Flour Mills and Amritsar Oils Works.

Engaged in manufacturing of vanaspati and refining and packing of imported edible oil, the company had its manufacturing and refining units at Delhi, Kanpur, Amritsar, Mumbai and Kolkata and packing units at Bengaluru and Chennai.

All the units except Breakfast Foods Unit (BFFU) located in Delhi were closed in the year 2001. The liquidation of the company is currently being done exclusive of BFFU. The liquidator has so far disposed off the moveable assets of the units at Chennai, Mumbai, Amritsar, Bangalore and Kanpur.

BFFU, since it was not able to recover the incremental costs from the operation, to minimise the loss by the production activities, has been discontinued from June, 2011.

At present, there are 97 employees left in HVOC. On the direction of the Delhi high court, their salaries and other dues are being paid from the funds available with the liquidator after sale realisation of moveable assets of HVOC.

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