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Cabinet accepts proposal to close down six PSUs

Our Bureau

NEW DELHI, June 20

THE Union Cabinet today accepted the recommendation of an expert group to close down six PSUs including National Bicycle Corporation of India Ltd (NBCIL), and Weighbird India Ltd (WIL).

The expert group had recommended that the six units were unviable and action needed to be taken to close down these units. The units are Mining and Allied Machinery Corporation Ltd, Tannery and Footwear Corporation Ltd (TAFCO), Bharat Process Mechanical Engineers Ltd (BPME) and Rehabilitation Industries Corporation Ltd, besides NBCIL and WIL.

The Cabinet decided to convey to the BIFR and High Courts that it concurred with the view of the expert group. The Cabinet also decided to submit the revival plan of the Bharat Ophthalmic Glass Ltd as recommended by the expert group to the BIFR for prepa ration of a draft rehabilitation scheme.

The Cabinet also decided to reopen the voluntary separation scheme (VSS) for a period of two months for the remaining employees in the six PSUs and to allow them an opportunity to avail of the benefits.

The extra budgetary provision required on this account will be Rs. 200 crores.

Of the ten sick PSUs in which the VSS was introduced, nine were referred to the expert group, while the tenth -- Cycle Corporation of India -- was not referred as its revival was taken up separately. The expert group recommended that there are no re asonable prospects of revival in case of seven PSUs while in the case of remaining two PSUs -- Bharat Opthalmic Glass Ltd and National Instruments Ltd -- the group recommended that these companies could be reviewed.