Mony K. Mathew

Thiruvananthapuram , Sept. 5

THE Cabinet sub-committee on public sector undertakings (PSUs) in Kerala has given an in-principle approval for the release of funds for implementing a voluntary retirement scheme (VRS) in Steel Industrials Kerala Ltd, Kerala State Salicylates and Chemicals Ltd and Kerala State Detergents and Chemicals Ltd.

These companies had already announced VRS for their employees and had sought funds to implement the scheme. The Cabinet panel's clearance is, however, subject to evaluation by the Finance Department and the availability of funds in the Budget, according to sources.

On the issue of release of funds to make pending payments to the employees where VRS had been implemented, the panel decided that the Finance Department could consider the matter on a case-by-case basis and within the limits of the Budget. The commitment on this count is estimated at Rs 11.40 crore for 15 PSUs.

In cases where salary arrears of employees (who had opted for VRS) are to be settled, it was decided that this could be at 50 per cent of the claims. This, too, would be after a study by the Finance Department and subject to the availability of funds in the Budget, the sources said.

A request by The Kerala Ceramics Ltd to provide Rs 23.65 crore as one-time support was also considered by the sub-committee. Out of the amount sought, Rs 14.26 crore is towards the settlement of dues to the Kerala State Electricity Board (KSEB).

The sub-committee permitted the company to sell excess land for settling the dues to KSEB. The decision on any other request for funds would be based on the prioritisation of restructuring proposals from PSUs by the Finance and Industries departments and approval by the sub-committee.

Similarly, decisions on request for funds from Malabar Spinning and Weaving Mills, Steel Complex Ltd, Traco Cable Company and Kerala State Bamboo Corporation will be based on the prioritisation by the Finance and Industries departments.

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