Kolkata, Sep 7 (IANS) Union Minister of State for Heavy Industries and Public Enterprises Babul Supriyo on Wednesday said the Union Cabinet has decided to close down the Hindustan Cables Ltd. (HCL) and its employees will be offered compensation as per the 2007 pay scales.
“Just held a meeting on HCL (Hindustan Cables Ltd.) with Anant Geete (Minister of Heavy Industries and Public Enterprises). Sorry, the Cabinet has decided on HCL closure. Good news is, packages will be as per 2007 pay scale,” he tweeted.
The government had decided to close central public sector enterprises, including the Hindustan Cables Ltd., which were incurring losses over the last three years.
Geete had earlier said the Centre would close Hindustan Cables after offering an attractive voluntary retirement package.
HCL, set up in 1952 at Rupnarainpur in West Bengal, has units in Hyderabad and Allahabad in Uttar Pradesh.
According to the government policy, the Department of Heavy Industry has been undertaking appraisals of each loss-making central public sector enterprise to assess the prospects of revival.
As a part of this exercise, the loss-making central enterprises which have the potential of a turnaround are revived whereas those found chronically sick are disinvested or closed down after payment of due compensation to employees.