Government today approved an improved voluntary retirement scheme (VRS) package for the employees of Hindustan Vegetable Oils Corporation (HVOC).
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 government assistance will be in the form of non-plan grant of around Rs 27.56 crore to the firm, it added.
HVOC is a Central Public Sector Enterprise (CPSE) under the Department of Food and Public Distribution in the Ministry of Consumer Affairs, Food and Public Distribution.
The employees of HVOC have been adversely impacted due to sickness of the company.
They are in very old pay scales of 1992. The improved VRS package will give fair amount of compensation to employees and help them in their post retirement rehabilitation, the statement said.
HVOC was formed in 1984 with merger of two nationalised companies — Ganesh Flour Mills and Amritsar Oils Works.
It was engaged in manufacturing vanaspati, refining and packing of imported edible oil for PDS and manufacturing of breakfast cereal.
The company had its manufacturing and refining units at Delhi, Kanpur, Amritsar, Mumbai and Kolkata and packing units at Bengaluru and Chennai.