HPCL may offer VRS before selloff

Hindustan Petroleum Corporation has approached the government to approve a voluntary retirement scheme for its employees prior to divestment.

The corporation is looking at reducing the 12,000 workforce by at least 1,200 and upto 1,800, or about 15 per cent of the total staff strength, senior HPCL officials said.

"The figure may still be higher considering surplus staff. The surplus has increased with the implementation of employee resource planning at various locations," they added.

The corporation has urged its administrative ministry, the ministry of petroleum and natural gas, to put forth a separation plan to the employees which is 'higher' than that offered by the department of public enterprise.

The corporation is demanding a 'separation package' on the lines of that offered by the Indian Oil Corporation, the refining and marketing oil major.

"We want our employees to feel safe and have good separation package. Our earlier demand was rejected by the Cabinet. But we have re-submitted our proposal, considering divestment of the corporation," said a senior official with HPCL.

"Normally in the shareholder's agreement with private firms, there is a provision that the latter will take care of the employees and after a year or so would offer VRS. This VRS would be equal or better than that offered by public sector companies. But our employees would like to exercise this option when they are still a PSU employee," the official claimed.

Besides HPCL, ONGC  as well as Bharat Petroleum Corporation have also submitted proposals for VRS to cut as many as 5,000 and 600 employees, respectively. India has a total workforce of about 350 million, of which the public sector employs over two million.

"Although after privatisation, the new management may offer VRS to the employees after a year or so, but there is always an apprehension on the package offered by a private company," the official added.

The government has called for 'expression of interest' to participate in the sale of 34.01 per cent government equity in HPCL.

Government currently holds 51.01 per cent equity in this 'Navratna' identified as having the potential to grow into a global giant. The last date of submission is March 17.