In a bid to speed up the process of closing down sick central public sector enterprises (CPSEs), Modi government has sweetened the package for employees opting for Voluntary Retirement Scheme (VRS) by giving them attractive compensation at 2007 notional pay scale.
Government think-tank NITI Aayog is preparing a fresh cabinet note recommending closure of 7 more sick CPSEs as part of an exercise to tackle mounting losses incurred by these entities.
"With a cash assistance of Rs 427.48 crore, the three loss making subsidiaries of HMT Ltd, namely HMT Watches, HMT Chinar Watches and HMT Bearings will attain closure after separation of about a thousand employees through attractive VRS/VSS and settlement of their dues," an official statement said.
According to a Kotak report titled â€˜Strategy: Divestment versus privatization‘, it may not be the best idea. â€œWe believe it is important for the government‘s divestment imperative to include a longer-term plan to improve the performance of public sector entities,â€ it said.
In an effort to increase the market visibility of its products, HMT Watches Ltd today launched its programme of setting up counters at prominent post offices in Uttarakhand, beginning with the General Post Office in the city.
Finally the government is considering to breathe life into the ailing watch company HMT. The BRPSE has approved revival plan for the Bangalore-based company, reports CNBC-TV18 quoting sources.