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Government to offer VRS, shut 8 sick companies; unions call it a pro-MNC move

In a major decision, the Union Cabinet on Saturday decided to close down eight BIFR-referred public sector companies and sell them to private enterpreneures after clearing workers' liabilities.

Under the scheme, all workers in these companies would be offered a generous Voluntary Retirement Scheme.

Earlier, the Cabinet Committee on Foreign Investment cleared 12 projects, mainly relating to increase in equity stakes by foreign partners.

Urban Development Minister Ram Jethmalani, after the meeting said, that the Cabinet had discussed the Urban Land Ceiling Act.

''You will hear on this issue in two or three days,'' he said, throwing a hint that an ordinance might be promulgated by the President.

The Cabinet approved another proposal to amend the Land Acquisition Act, 1984 with an object to ease the procedure for acquisition of land for infrastructure projects.

An official spokesman said VRS would be offered to around 11,000 employees and this would impose a liability of around Rs 5.17 billion.

Of the eight PSUs which will be closed down, six are West Bengal-based -- MAMC, TAFCO, Cycles Corporation, National Bicycles Corporation, National Instrumentation, BOGL, Wieghbird Limited and RIC -- and one each in Kanpur and Bombay.

The Centre of Indian Trade Unions today criticised the VRS decision. It would throw many workers and officers out of jobs and provide more space to multi-national companies, it said.

Union leaders demanded that sufficient funds be allotted to revive these industries by ensuring technological upgradation, providing working capital and revising existing tax and customs duty structures.

UNI