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The Union Cabinet today decided that action to dissolve Indian Investment Centre (IIC) may be taken after the expiry of three months. The VRS scheme applicable to surplus employees of Central Government may be offered to the employees of IIC. The scheme may be kept open for a period of three months with effect from the date of offer to be issued by IIC. Requisite budget provision to meet the expenditure both on account of VRS as well as pension and family pension liabilities will be included in Revised Estimates 2004-05.
IIC was established as an autonomous organisation in 1960 with its headquarters in New Delhi with the objective of doing promotional work abroad to attract foreign private investment in India and establishment of joint ventures, technical collaborations and third country ventures between Indian and foreign entrepreneurs. In addition to the head office at New Delhi, IIC had also set up offices abroad at New York, London, Abu Dhabi, Frankfurt, Singapore and Tokyo.
During the ten year period i.e. 1981 to 1990, the Indian Investment Centre was able to mobilise only about Rs.1275 crore and it led to the closure of its foreign offices in 1991 and 1992. In its report, the Expenditure Reforms Commission (ERC) observed that with liberalisation and economic reforms, the role of IIC had diminished. The total expenditure on the payment of VRS package to 74 officials of IIC is estimated at about Rs.7 crore. The implementation of VRS package and subsequent closure of IIC will ensure pay-back to the Government in about three years.
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