Hindustan Cables which was remained unproductive from 2003 has finally been cut off as the cabinet approved for its closure on Wednesday. Also, strategic sale of sick public sector firm Bharat Pumps and Compressors has been approved.
It has also approved an outlay of more than Rs.4,800 crore to pay statutory dues to these firms’ employees and creditors.
“The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved a proposal to provide a non-Plan loan to the Allahabad-based public sector unit (PSU) Bharat Pumps and Compressors Limited,” HRD Minister Prakash Javadekar said.
The CCEA also granted ‘in principle’ approval for strategic disinvestment of the company that will be carried out at a later stage, the minister said. A Rs.111.59 crore loan would be used to settle outstanding statutory dues payable to its retired employees such as provident fund and gratuity as well as dues payable to the Central Industrial Security Force.