PSUs in West Bengal where VSS was extended

The VSS (forced retrenchment with higher compensation) was extended to the seven PSUs in West Bengal as shown in the Annexure. In the case of 8th PSU i.e. National Instruments Limited (NIL), the question of extending VSS did not arise an a Draft Revival Scheme (DRS) has been circulated by BIFR and the hearing has been fixed on 15th April, 1999. If the Government agrees to be DRS, the revival package can be finalized.

Parliament members said, "In the above context, non-provision of any budgetary allocation (either plan or non-plan) for the above units in the Budget presented by the Finance Minister on 27.2.99 has created a farcical situation. As a matter of fact, against the non-plan support of Rs. 500 crores approx. in 1998-99, not a single paisa has been allocated in this year’s budget for these units. Even if the aforesaid Cabinet decision could not be reflected in the budgetary figure we fail to understand as to why the Hon’ble Finance Minister could not at least mention in his budget speech that necessary plan/non-plan support would be kept in pursuance of the Cabinet decision. Further by deciding to continue the VSS for 3 months more, the question of revival becomes self-defeating with already a depleted man-power by 40 through VSS. VSS and exploration of revival cannot obviously go together.

They pointed out, the Government should immediately arrange some non-plan support to continue the holding on operation of these units i.e. working capital support to optimise the present production level till a final decision is obtained from the high powered committee of experts. Otherwise it would appear that Government is creating an illusion of revival without men and money to implement the same.

Parliament members demanded, to sum up, in order to ally the apprehension of the employees of these units that their livelihood is being treated in cavalier and contemptuous manner, the Government must ensure:-

1. stoppage of VSS till a final decision on revival is taken.
2. Adequate provision of working capital in the budget to optimise the production during the interim period.
3. Infusion of capital for revival in the cases where schemes have been already formulated by the experts / operating agency.
4. Immediate notification of the decision of the Government in this regard, including terms of reference of the Expert Committee.

The signatories in the memorandum are :