Why Step-motherly Treatment To Bank employees?
Govt provides Rs 116 cr to 11 sick PSUs for payment of wages, other dues-Business Line 27.11.2013
NEW DELHI, NOV 26:
The government today provided Rs 116.86 crore to eleven sick public sector units (PSUs) including HMT Machine Tools towards payment of wages and other dues.
The decision to provide funds to the PSUs was taken by the Cabinet Committee on Economic Affairs (CCEA).
“CCEA today approved the proposal for providing non-plan budgetary support of Rs 116.86 crore for liquidation of statutory dues (Provident Fund, Gratuity, Pension, Employees State Insurance and Bonus) and salary and wages from 01-04-2013 to 31-08-2013 in respect of 11 Central Public Sector Enterprises,” an official statement said.
The PSUs which would get the funds are Hindustan Cables, HMT Machine Tools, HMT (Watches), HMT (Chinar Watches), Nagaland Pulp & Paper, Triveni Structurals, Tungbhadra Steel Products, Nepa Ltd, HMT Bearings, Hindustan Photo Films and Tyre Corporation of India, it said.
It also said that the revival/closure plans of Hindustan Cables, Triveni Structurals, HMT (Watches), HMT (Chinar Watches), Hindustan Photo Films and HMT Machine Tools were yet to be finalised.
Further, the revival plans of Nepa Ltd and Nagaland Pulp & Paper have recently been approved whereas the revival plans of HMT Bearings and Tungbhadra Steel Products were yet to materialise.
“Disinvestment of Tyre Corporation of India is under process. It was, therefore, considered essential that the interim financial support from the Government be provided so that the operation of these companies may not be affected,” it added.
It said that non-settlement of these liabilities has been causing serious hardship not only to the employees of the companies but also adversely affecting the day-to-day operation of the companies resulting in further deterioration of their performance.
“Payment of outstanding dues of salary and wages would mitigate the hardships of the employees thereby motivating them for better output and prepare them to achieve the goal of revival/re-structuring of the companies,” it said.
It added that the clearance of outstanding statutory dues would result in fulfilment of statutory obligations.
BSNL unlikely to post profit before 2018-Live Mint
BSNL says losses to total Rs11,700 crore by 2018; firm may see entire net worth erode by then
Shauvik Ghosh
New Delhi/Singapore: Bharat Sanchar Nigam Ltd ( BSNL ) is unlikely to report a profit until at least 2018 even if the money-losing telecom services provider gets the Rs. 15,000 crore bailout package it has sought from the government, the state-run company has said in a presentation to a group of ministers that is looking at ways to revive the company.
The company will accumulate losses of around Rs.11,700 crore by 2018 despite state support before it can turn around, it said in the presentation that has been reviewed by Mint. The projections are based on the company retaining its current market share over the next five years and being able to invest in expanding its network and services.
Without government aid, BSNL is like to entirely erode its net worth in another five years. The company has seen a steady erosion of its net worth since 2010, when it reported a loss of Rs.1,823 crore, the first since it was carved out of the government’s telecom department in October 2000.
Can privatize Air India if political parties agree, Ajit Singh says-Times of India-16.10.2013
NEW DELHI: Privatization of Air India could be considered if there is political consensus, aviation minister Ajit Singh said on Saturday. He indicated that it may not be possible for any government to keep funding AI beyond the existing Rs 30,000 crore package spread over nine years.
"Once upon a time, the government used to run hotels. Slowly it got out of that business and even the public felt that it should not be doing that job. Maybe the public will start feeling the same way for AI and the political class may take decisions accordingly. AI has to be self-sufficient and employees must realize that they have to perform or the airline is at stake. State funding cannot be endless," Singh said.
According to the Centre for Asia Pacific Aviation (CAPA), AI has lost Rs 34,635 crore from 2007-13; has a total debt of Rs 46,500 crore and vendor dues of almost Rs 5,500 crore. The delay in deciding the fate of AI has brought the airline to the brink of a financial disaster. In 2000, the then NDA government had decided to sell 40% stake in Air India. The Tata Group had then tied up with Singapore Airlines (SIA) to bid for the airline founded by JRD Tata.
Sugar industry gets Cabinet panel nod for interest-free loan-Business Line-27.12.2013
NEW DELHI, DEC 26:
The Government on Thursday approved modalities for providing interest-free loans worth Rs 6,600 crore to the sugar industry for payment of cane price arrears.
The Cabinet Committee on Economic Affairs gave its final approval to the proposal to provide interest subvention for financial assistance to the sugar industry for effecting cane payments.
arrears
Reeling under the impact of high cane costs amidst a prolonged bearish trend in sugar prices, the industry is currently saddled with arrears of around Rs 3,000 crore.
With cane crushing gaining momentum in the current 2013-14 season, the payment dues for the current season have started building up.
Tracking the Cabinet approval, scrips of sugar companies such as Bajaj Hindustan and Shree Renuka Sugars edged up to close higher on Thursday.
The scrip of Bajaj Hindustan gained 2.33 per cent to end at Rs 14.48, while that of Shree Renuka Sugars closed 1.76 per cent higher at Rs 20.25.
Triveni Engineering gained 15.02 per cent to end at Rs 15.85 on the BSE, while Dhampur Sugars ended 1.15 per cent higher at Rs 35.05. Sakti Sugars ended 2.88 per cent higher at Rs 16.05 on the BSE on Thursday.
Under the relief package, the Centre will provide an interest subvention of up to 12 per cent for additional working capital loans to the sugar companies, equivalent to last three seasons excise duty, cess and surcharge on sugar.
The expenditure for the financial package will be fully met from the Sugar Development Fund, an official statement said.
The loans would have a two-year moratorium and would have to be repaid in five years.
The loans would be meant exclusively for the effecting cane price payment by the sugar mills.
Sugar undertakings with loans will be classified as non-performing assets and will also be eligible for the loans, provided the State Governments concerned stand guarantee for the new loans, the statement said.
The industry expects a relief package to reduce the interest burden of around Rs 500 crore annually, over the next five years.
Cabinet approves pension proposal for MTNL employees-OI 27.12.2013
NEW DELHI: The Cabinet on Thursday approved a pension proposal for 43,000 MTNL employees, who joined the public sector company from Department of Telecom, that would cost the government an estimated Rs 500 crore annually.
The decision is likely to bring additional amount of about Rs 1,500 crore (including interest) in the books of MTNL as refund from government for the pension that the PSU paid to its employees. "The Union Cabinet today approved that the erstwhile all categories of employees of the government absorbed in MTNL and who have opted for combined service may be given similar treatment in the matter of payment of pensionary benefits as available to the absorbed employees of BSNL," an official statement said.
This would means pension benefits would be available for their service term at DoT as well as their rest of the period at MTNL. The total number of such employees is estimated to be 43,000 which including 16,000 retired and about 27,000 existing employees of the PSU. "The proposal entails an estimated recurring expenditure of approximately Rs 500 crore per annum besides adjustments in respect of Government pension liability previously discharged by MTNL," the statement said.
The pay scale at MTNL is comparatively higher to that of BSNL and the government will bear the cost of pension similar to the amount paid to the latter.
The difference in the pension amount will be borne by MTNL till the time of next pay revision when salaries at both the PSU will come at par. The next pay revision is expected to take place in 2017.
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