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Union Heavy Industry Ministry proposed to shut down six sick CPSE to the Union Cabinet

Sep 26, 2014 17:39 IST

Union Ministry of Heavy Industries and Public Enterprises on 25 September 2014 proposed the Union Cabinet to shut down six sick Central Public Sector Undertakings (CPSEs).

The sick CPSEs include HMT Watches, HMT Barings, HMT Chinar Watch, Hindustan Photo Films, Hindustan Cables and Tungbhadra Steel.

Besides, the Ministry also proposed to revive 5 CPSEs. These CPSEs include HMT Machine Tools, Heavy Engineering Corporation, NEPA, Nagaland Paper & Pulp Co; and Triveni Structurals.

The proposal of Heavy Industry Ministry is based on the recommendations of the Board for Reconstruction of Public Sector Enterprises (BRPSEs).

The six companies together have around 3603 workers. The Ministry has planned to spend 1080 crore rupees towards one-time settlement through a voluntary retirement scheme for workers.

HMT Watches, which is a subsidiary of HMT Ltd, has already submitted a voluntary retirement/voluntary separation scheme to the Government for downsizing its manpower.

The Ministry also said that after the closures of these six CPSEs, the sale of assets of these state holdings will be made to private companies. Also, it informed that efforts were on to monetise vacant land available with 11 sick PSUs, which have an estimated 8000 acres.

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