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.
In line with the consistent efforts for enhancing productivity, improving manpower profile, rationalisation of manpower and optimisation of manpower cost, the company implemented the VRS during the period from May 1-June 30, 2016 at all its plants/units, it said in a BSE filing.
The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has given approval to the proposal for offering an improved VRS package based on 2007 notional pay scales for the employees of HVOC, an official statement said.
"The company, on April 28, 2016, announced a voluntary retirement scheme for employees who have either completed 10 years of service or are above 40 years of age. This has been done with the objective of reducing headcount in order to improve productivity in the company," Titan Company said in a BSE filing today.
High salary and interest costs have hurt MTNL. It plans to cut salary costs by coming up with a Voluntary Retirement Scheme (VRS), says NK Yadav, CMD, MTNL.
Satish Jamdar, MD of Blue Star told CNBC-TV18 that increased capex, revival of projects will push economic growth.
Manohar Parrikar also clarified that the concept of 'Voluntary Retirement Scheme (VRS) does not exist in the Armed Forces. "In the Armed Forces even if you apply, you may not get voluntary retirement, unlike (in) civilian (service), where you can get it.
The Chennai unit which was closed in 2013, the Kansai Nerolac Paints Ltd said it decided to close the factory due to high wages and low productivity and the machinery and the plant have become outdated and unproductive.
The exercise will cost around Rs 30 crore and will have a payback of two years. The one time impact will be reflected in the company's Q2 results, it said.
The government today said MTNL has asked for full financial support for offering voluntary retirement scheme (VRS) to its employees.
Loss-making telecom PSU BSNL has said that no decision has been taken so far to offer voluntary retirement scheme (VRS) to its employees who are nearing the age of retirement.