The Hindu : National : Dues, salaries of 16 PSU staff cleared

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Friday, Jun 17, 2005

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Dues, salaries of 16 PSU staff cleared

Special Correspondent

Package for Kolkata-based company

NEW DELHI: The Cabinet Committee on Economic Affairs (CCEA) on Thursday approved the provision of Rs. 141.41 crores as budgetary support to 16 Central public sector undertakings (PSUs) under the Ministry of Heavy Industry to facilitate the payment of pending salaries and other statutory dues to the employees.

In another decision, the CCEA also cleared the financial restructuring package for Kolkata-based Braithwaite Burn and Jessop (BBJ) Construction Company to help it revive and strengthen its performance.

``The support to the PSUs would clear off the salaries and statutory dues they owe to their employees till Match 31, 2005,'' Finance Minister P. Chidambaram told newspersons after the CCEA meeting. While the salary dues amounting to Rs. 98.43 crores, the other statutory dues total Rs. 42.98 crores for the period from August 2004 to March 2005.

Last year, the Government had paid Rs. 517.543 crores to 24 PSUs under the Ministry for paying salaries and other dues of their employees till June 2004. Of these, eight PSUs have managed to make earn enough to pay salaries. The fresh provision will benefit employees of Andrew Yule, Hindustan Cables, Bharat Heavy Plates and Vessels and HMT Watches, among others.

As for the BBJ Construction Company package, it involves conversion of loan and interest into equity and zero coupon debentures.

The actual cash impact is in the form of waiver of interest and penal interest worth Rs. 30.73 crores. No interest is to be levied on the company beyond the cut-off date of March 31, 2004.

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