Employees of 10 ailing central public sector enterprises (CPSEs), including Hindustan Cables and HMT, will get their outstanding salaries and other statutory dues like PF and gratuity for six months up to March 2013. The Cabinet committee on economic affairs approved a non-Plan budgetary support of R128.26 crore for liquidation of statutory dues (provident fund, gratuity, pension, employees state insurance and bonus) and salaries and wages from 1 October 2012 to 31 March 2013 in respect of 10 CPSEs under the department of heavy industry, an official statement said. Other CPSEs are Nagaland Pulp & Paper, Triveni Structurals, Tungbhadra Steel Products, Nepa, HMT Bearings and Hindustan Photo Films.

Cabinet to takes a call on Roongta panel recommendations soon

The Cabinet is expected to take up the Roongta committee-proposed reforms for state-owned companies, including a three-year fixed tenure for CPSE heads, next month. ?We have already processed the Roongta committee recommendations and they should be coming to the Cabinet in a short time?, minister of heavy industries and public enterprises Praful Patel said. ?I think, in September, we should see the Cabinet approving most of the recommendations,? he said.

Cabinet ratifies Neyveli Lignite stake sale through IPP

The Cabinet ratified the decision to sell a 3.56% stake in Tamil Nadu-based Neyveli Lignite Corporation (NLC) through an institutional placement programme (IPP) for R360 crore. While the 5.97 crore shares of the company were sold on August 2, the Cabinet committee on economic affairs gave a post-facto approval for the disinvestment. The stake sale was done to meet the minimum public holding norm of the Sebi. While the CCEA had in June approved a 5% stake sale in NLC through the offer for sale (OFS) route, the empowered group of ministers (EGoM) on disinvestment later cleared selling only 3.56% in NLC, in view of the Tamil Nadu government?s proposal to buy the company?s shares.

NHPC plans to buy back shares worth R1,600 crore

The state-owned NHPC is planning to buyback shares worth R1,600 crore from the market to shore up its valuations. The government had earlier planned to disinvest 11.36% stake in NHPC through the offer for sale route, but volatile market conditions and the falling market price of the share have delayed the issue. ?The share buyback proposal is aimed at improving the value of the company?s share in the market,? PTI quoted a source as saying. Government currently holds 86.36% stake in NHPC. The company will have to seek approval from its board for the share buyback, after which the power ministry will approach the Cabinet for the final nod.

CAG asks SCI to introduce a transparent system for ship sale

Shipping Corporation (SCI) needs to put in place a transparent ship disposal system to check delays and fetch maximum prices for the vessels, government auditor CAG said. ?Though the company has to dispose of the vessels that have passed their economic life to keep a robust young fleet, the procedures for disposal needs to be more transparent, Comptroller and Auditor General of India (CAG) said in its report. SCI garnered about R600 crore from sale of 30 old ships between 2009-10 and 2011-12 and realised R598.67 crore as net sale proceeds. CAG asked the state-run company to evolve a time-frame for the entire process for various milestones from in-principle approval for disposal of vessels up to their eventual sale.