Non-Payment of Salaries to Employees of Hindustan Shipyard Ltd.

Non-Payment of Salaries to Employees of Hindustan Shipyard Ltd.

Government has already transferred Hindustan Shipyard Limited (HSL), which was earlier under the Ministry of Shipping to the Department of Defence Production, Ministry of Defence by way of amendment of the Allocation of Business Rules on 23rd February 2010.

Rs.5l.43 crores approximately is due as arrears upto April, 2011 towards pay revision w.e.f. 1.1.2009. The revised salaries are being paid from May, 2011.

HSL is not in a healthy financial situation. As on 31.3.2011 this Shipyard has accumulated losses of Rs.930.10 crores and the negative net worth of Rs.628.01 crores. In the wage revision settlement entered into with the Union by the Management of HSL, it was agreed that payment of arrears on account of revision will be made based on the improvement in the financial position of the Company.

This information was given by Minister of State for Defence Shri MM Pallam Raju in a written reply to Shri Nandi Yellaiah in Rajya Sabha today

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