Loss-making state firms may be shut

The Cabinet is likely to decide on a proposal to shut down terminally-ill Hindustan Cables by offering a voluntary retirement scheme to its 1,500 employees in a couple of weeks, Union minister Anant Geete said on Tuesday.

“The proposal regarding closure formalities of Hindustan Cables should be cleared by the Cabinet in 1-2 weeks,” heavy industry and public enterprises minister Geete told reporters.

As per the proposal, employees of Hindustan Cables will be offered VRS as per 2007 pay scale.

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 government has already decided to shut four CPSEs including three units of HMT and Tungabhadra Steel.

Mr Geete said that his ministry will also send a proposal to the Cabinet regarding closure of the loss-making Instrumen-tation Limited unit at Kota in Rajasthan.

“Rajasthan has rejected a proposal (to take over the unit) so we have decided to shut the unit. We will send a proposal to Cabinet in this regard,” he said.