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The Government have announced a major relief package for a large number of Public Sector Enterprises (PSEs) under the Department of Heavy Industries. To revitalise the PSEs Government have decided to sanction an amount of Rs.517 crores as the first tranche of money required for restructuring of 24 ailing units under the Department of Heavy Industries. Addressing a Press Conference here today, the Minister of State for Heavy Industries and Public Enterprises, Shri Sontosh Mohan Dev said the sum will be released immediately in the current financial year and the amount is to be used to defray the long standing statutory dues such as provident fund, gratuity, pension, Employees State Insurance, bonus and wages of 45,000 employees of loss making PSEs.
The Government have also decided to increase payment of ex-gratia amount under Voluntary Retirement Scheme (VRS) to employees in the PSEs following the Central Dearness Allowance (CDA) pattern of pay scales at 1.1.1986 level. Ex-gratia payment to employees under the unrevised Industrial Dearness Allowance (IDA) scale has already been enhanced by the Government earlier. Through the present decision, the Government have decided to do away with disparity in ex-gratia payment to employees in PSEs under different patterns of unrevised pay scales, when they opt to avail themselves of VRS. The enhancement is to the tune of 50% of the admissible ex-gratia computed on their existing pay scales in accordance with the present scheme of VRS.
The Minister also announced that the Government would extend the purchase Preference Policy beyond 31.3.2004 for a further period of one year up to 31.3.2005. The Department of Public Enterprises will be issuing necessary guidelines to this effect shortly.
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