Rs. 25 crores set aside to cover special financial package for employees of PSUs marked for winding up

SUBASH RAI
GANGTOK, 17 March: April 30 will be the last “salaried working day” for the 280 employees at the three Public Sector Units - Sikkim Time Corporation, Sikkim Jewels Ltd. and Sikkim Precision Industries Ltd. - which the State Cabinet has approved for winding up. The State Government, it is learnt, has set aside Rs. 25 crores to cover the Special Financial Package to be offered to the employees of these units.
Out of the 280 employees, 107 belong to SITCO, 106 to Sikkim Jewels and 67 are employed with SPIL. These figures exclude the three Managing Directors, but include all Muster Roll employees.

Speaking to NOW! PT Euthenpa, Special Secretary to the Department of Commerce & Industries, confirmed, “These employees will be given a Special Financial Package, the working out of which is being carried out by the management of the respective PSUs at present.”
He clarified that this financial package should not be seen as a Voluntary Retirement Scheme [VRS] offer because this was a settlement for employees whose units [places of work] were being shut down.
While Mr. Euthenpa did not divulge the quantum of funds set aside for this measure, informed sources suggest that the State Government has earmarked around Rs. 25 crores to cover the special financial package to be offered to these employees. This will be settled by 30 April, it is learnt. No pension benefits will be enjoyed by any of the employees, it is added.
According to the Special Secretary, the various slabs for the financial package will be calculated based on seniority, rank and employment status of the employees at their respective establishments.
Mr. Euthenpa further explained that the Government was forced to take this step of closing down the units because these PSUs, which had been running on loss for a long while, had, since 2002, become completely dependent on Government funding to meet all their requirements.
He believes that the rise in the cost of production and increased market competition were some of the reasons behind turning these units into a loss making ventures.
Asked about the fate of the infrastructure, Mr. Euthenpa said that the Government will probably hand these over to those Government departments which are cuurently operating from rented accommodations.
Among these PSUs, Sikkim Jewels at Tadong is the oldest one, established in 1972 to manufacture precision jewels for watches.
Four years later, in 1976, SITCO situated at Deorali, was set up to assemble watches.
The youngest one, SPIL, presently based in Namchi, South Sikkim, started from the SITCO premises in 2002. The unit was assigned to produce power devices.
At present, all work has been stopped at these PSUs with the employees sent on paid leave till 30 April.
“From 01 May onwards, no financial transactions relating to salaries will be carried out at these units,” informed Mr. Euthenpa.