Government has taken the final call on closure of Hindustan Cables Ltd (HCL) and the VRS compensation to employees will be paid as per the 2007 pay scales, Union Minister Babul Supriyo said on Thursday.
"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," Supriyo, the Minister of State for Heavy Industries and Public Enterprises, tweeted earlier in the day.
There are 1,500 employees in the sick company.
The Centre had decided to close CPSEs, including the Hindustan Cables Ltd, which were incurring losses over the last three years.
Set up in 1952 at Rupnarainpur in West Bengal, HCL has units in Hyderabad and in Uttar Pradesh’s Allahabad.
According to the government policy, the Department of Heavy Industry has been undertaking appraisals of each loss-making CPS enterprise to assess the prospects of revival.