New Delhi: The government plans to shut down terminally sick Hindustan Cables by offering an "attractive VRS" to its 1,500 employees, a final decision on which is expected in 2-3 months.For latest news on Business & Budget 2017, like us on Facebook and follow us on Twitter.
"We will close down Hindustan Cables after offering an attractive VRS package. We have sent the proposal to Cabinet. A decision is expected in 2-3 months," Union Heavy Industries and Public Enterprises Minister Anant Geete told PTI.
The Cabinet had earlier approved closure of seven terminally sick public sector units, including Hindustan Cables, which have incurred a total loss of around Rs 3,139 crore over a period of time.
The ministry was tasked with firming up individual proposals entailing VRS related to the central public sector enterprises (CPSEs) falling under it, including Hindustan Cables.
However, reports of revival of the company had surfaced after the Defence Ministry approved its takeover by Ordnance Factory Board. The Board for Reconstruction of Public Sector Enterprises was supposed to take a call on it after taking into account views of all the ministries concerned.
Hindustan Cables, set up in 1952 at Rupnarayanpur (West Bengal), has units in different states.
However, the company's units in West Bengal and Hyderabad producing Polythene Insulated Jelly Filled (PIJF) cables had not been in production since January 2003, as there is no requirement of these cables in BSNL/MTNL.
Similarly, the unit at Naini, Allahabad, producing optical fibre cable, had also become obsolete due to change in the product specification.
The PSUs where closure had earlier been approved are HMT Bearings, Tungabhadra Steel Products, Hindustan Photo Films Manufacturing Co, HMT Watches, HMT Chinar Watches, Hindustan Cables and Spices Trading Corporation Ltd.
Last month, the government decided to shut Tungabhadra Steel after the Cabinet Committee of Economic Affairs (CCEA) gave the nod to its individual closure proposal.
"Prime Minister Narendra Modi has asked us to dispose of the assets and settle liabilities of Tungabhadra Steel within three months' time," Mr Geete said.