30th April, 2003
Ministry of Heavy Industries and Public Enterprises  


VR SCHEME ATTRACTS OVER 4 LAKH PSE EMPLOYEES

CONSULTATIVE COMMITTEE FOR HI&PE MEETS


An attractive voluntary retirement scheme introduced in May 2000 has helped PSEs in rationalising workforce. A very good compensation package under the Scheme has helped more than four lakh workers to respectfully part ways with their organisation and yet remain financially secure and cared for. This was stated by the Heavy Industries and Public Enterprises Minister, Shri Balasaheb Vikhe Patil at a meeting of the Parliamentary Consultative Committee attached to his Ministry last evening. Shri Patil said the implementation of Counselling, Retraining and Redeployment (CRR) Scheme is representative of the Government's approach to pursuing reforms with a human face.

The Members were informed that CRR Scheme is one such initiative to help workers after Voluntary Retirement. This process was started when the Government had set up a National Renewal Fund in February, 1992 to create a safety net for those sections of the workers who are likely to be adversely affected by the process of restructuring and reforms. In around 10 years period, about 55,000 employees were retrained. However, this was grossly inadequate. The current CRR scheme was formulated and launched in November 2001. Major success has been achieved in covering large number of workers under this scheme since then. During 2001-02, plan fund of Rs.Eight crore was provided which was increased to Rs.Ten crore in 2002-03. However, to take care of all the VRS optees wanting to avail of this scheme atleast Rs.20 to 25 crore was needed, he added.

Cement Corporation of India was the second area of discussion at the meeting. Shri Patil informed the Committee that the Cement Corporation of India, after playing a very important role in the country's economy for several decades, has got into bad shape. Tough competition is as much responsible for its dwindling fortunes as other factors. CCI has been with BIFR since 1966. BIFR has not succeeded in coming up with any viable revival plan. Therefore, in October 2002, BIFR has given the decision to the Operating Agency, i.e. IFCI for completing the sale process of all the units of CCI within six months.

Paper Industry PSEs under the Ministry was the third area taken up for discussion at the meeting. The Minister said that there are two PSEs, Hindustan Paper Corporation Ltd. (HPC) and NEPA under the Ministry. HPC has one operational subsidiary, Hindustan Newsprint Limited (HNL) – the other two subsidiaries i.e. Nagaland Pulp & Paper Company (NPPC) and Mandya National Paper Mills Ltd. (MNPC) are not functional.

HPC has two large plants at Nagaon and Cachar in Assam manufacturing paper. HNL, in Kerala, is a large unit manufacturing newsprint. HPC has been making profits consistently for the last six years and HNL for the last 12 years except during the last financial year. All the three Mills have obtained ISO 9002 and certification after complying with the requirement of Quality Management System and Environmental Management System requirement.

NEPA located in Khandwa District of MP unfortunately has been making losses for over a decade. Not only is the plant and equipment very old, it also has a major drawback in the absence of de-inking facility. As in the case of the other Newsprint mills, cheaper imports are causing serious stress on the viability of the unit.

NPPC was also referred to BIFR which has ordered its winding up in March 2002. An appeal against the BIFR decision of winding up was filed by the Government of Nagaland and the NPPC employees in the AAIFR which is still pending.

The following Members of Parliament attended yesterday's meeting : Shri M.V.Rajsekharan and Dr. Bikram Sarkar.