Question : SEVERANCE PACKAGE FOR EMPLOYEES OF AILING FERTILIZER COMPANIES

(a) whether the Government have proposed Rs.415 crore severance package for employees of three ailing fertilizer companies as reported in the ‘Hindustan Times’ dated 16.7.2002;

(b) if so, the number of employees on the verge of losing their jobs due to the closing of fertilizer units;

(c) the details of the package formulated by the Government for the benefit of the employees of these three ailing fertilizer companies; and

(d) the steps taken by the Government to revive the other sick units?

THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS (SHRI TAPAN SIKDAR)

(a) to (c) : Based on the recommendations of the Group of Ministers (GOM) constituted to examine the rehabilitation/restructuring proposals of sick fertilizer Public Sector Undertakings (PSUs), the Government have inter–alia approved the closure/hive off of some of the units of Hindustan Fertilizer Corporation Ltd. (HFC), Fertilizer Corporation of India Ltd. (FCI) and Pyrites, Phosphates and Chemicals Ltd. (PPCL). Government have also approved extension of Voluntary Separation Scheme (VSS) benefits to all employees of the units to be closed. Over 6400 employees of these units will be entitled to these benefits involving approximately Rs.420 crore.

(d) The rehabilitation proposals for the remaining units of the sick PSUs are before the GOM constituted for the purpose.