Confirming the move, industry minister Sikander Bakht said workers in companies, which are being wound up are eligible for retrenchment benefits but the new package would give them the best possible benefits under an improvised voluntary retirement scheme (VRS).

"We are not interested in throwing out even a single worker on the road. We are going to be very generous with the workers," Bakht said. The nine PSUs are National Bicycle Corporation, Cycle Corporation, Bharat Process and Mechanised Engineering, Weighbird India, Mining and Allied Machinery Corporation, Tannery and Footwear Company, Rehabilitation Industries Corporation, National Instruments and Bharat Ophtalmic Glass. Bakht said though he did not expect workers to retaliate against the `extremely positive' package, which isexpected to be cleared this month, there could be a `backlash from vested interests who are politically interested in keeping the issue going.'

Bakht declined to give details on funding of the package, but said raising resources for the VRS would not be a problem.

"There is going to be no difficulty in finding the money. As such we are already giving them money from the exchequer to pay their wages," he added.

The new VRS package envisages a maximum of five years wages for a worker in these PSUs for 30 years of completed service, industry ministry sources said. At present the government gives a non-plan support of about Rs 50 crore annually to pay wages and for working capital to these nine psus.

Closure of nine PSUs is part of a five-pronged strategy for improving the performance of 48 PSUs under the Department of Heavy Industry (DHI). The action prepared by DHI last month to improve performance and financial health of 48 PSUs envisages financial restructuring, joint ventures, manpowerrationalisation, restructuring of boards, besides the Board for Industrial and Financial Restructuring route.

"Revival is one of our chief aims. Whenever a decision has to be taken to wind up a PSU, it would be taken only after reviewing all other options," Bakht said. He said the ministry was waiting for court clearance in the case of two PSU, where BIFR's winding up notices have been challenged.