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Govt implementing retraining, redeployment scheme for PSU employees released under VRS

The government is implementing a retraining and redeployment scheme for PSU employees who have been released under VRS, said MoS Finance Dr Bhagwat Kishanrao Karad
Govt implementing retraining, redeployment scheme for PSU employees released under VRS
Govt implementing retraining, redeployment scheme for PSU employees released under VRS
  • The minister told the House that the terms and conditions of the strategic sale suitably address PSU employees’ concerns in the SPA and SHA
  • Since 2016, the government has given ‘in-principle’ approval for strategic disinvestment of 35 PSUs and/or subsidiaries, units, joint ventures of PSUs

New Delhi: The government is implementing a retraining and redeployment scheme for PSU employees who have been released under the Voluntary Retirement Scheme (VRS), Minister of State (MoS) for Finance Dr Bhagwat Kishanrao Karad told the Lok Sabha on Monday. In response to a question on the action taken by the government to provide means of livelihood to the workers employed in sick/closed down PSUs, Dr Karad said, “The employees of CPSEs, which are being closed are entitled to compensation as per VRS/VSS guidelines of the Department of Public Enterprises (DPE).”

“Further, Government is implementing Counseling, Retraining and Redeployment (CRR) scheme for employees of CPSEs who have been released under VRS/VSS. These separated employees or their dependents have the opportunity of availing short duration skill trainings under the CRR scheme for self-wage employment,” said the minister.

PSU employees’ concerns suitably addressed in SPA: Dr Karad

The minister told the House that the terms and conditions of the strategic sale suitably address employees’ concerns in the Share Purchase Agreement (SPA), Share Holders’ Agreement (SHA) which is signed between the government and the strategic buyer. He added that as per the information received from the Department of Investment and Public Asset Management (DIPAM), the nodal department for disinvestment and privatisation of PSUs, the government, since 2016, has given ‘in-principle’ approval for strategic disinvestment of 35 PSUs and/or subsidiaries, units, joint ventures of PSUs.

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New public sector policy

The government has notified the New Public Sector Enterprise (“PSE”) policy in February, under which public sector commercial enterprises have been classified as strategic and non-strategic sectors. In strategic sectors, bare minimum presence of the existing PSUs at holding company level will be retained under government control. The remaining enterprises in a strategic sector will be considered for privatisation or merger or subsidiarisation with another PSE or for closure. PSEs in non-strategic sectors shall be considered for privatisation, where feasible, otherwise such enterprises shall be considered for closure. 

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