So although an attractive VRS package is being worked out for the employees, the Cabinet is yet to close the sick PSUs. Sources said that while Industry Minister Sikander Bakht is pressing for closure, his Cabinet colleagues have advised ``caution.''

One reason is that half of these units are located in West Bengal. And at a Cabinet meeting, Union Power Minister P R Kumaramangalam is believed to have suggested that BJP's ally Trinamool Congress should be taken into confidence before any decision is taken. He said that winding up is a good idea but the BJP can't afford to antagonise Mamata Banerjee.

Most Cabinet members have endorsed this view. Theyclaim that rushing through such a decision could create a political backlash and upset the entire PSU reform process. Sources say that further action can be taken only after a senior BJP leader like L K Advani has a chat with Banerjee. The BJP is also waiting for the Bihar issue to die down.

Incidentally, Bakht had said in mid-August: ``There is no deadline (for closing down) but 1999 is too far away. I think it should happen earlier than that. They could be closed down by the end of this year.''

These PSUs are: National Bicycle Corporation; Tannery and Footwear Corporation; Weighbird India; Bharat Process & Mechanical Engineers; Mining and Allied Machinery Corporation Limited; Bharat Opthalmic Glass; Cycle Corporation of India and National Instruments.

Those which have units in West Bengal include the Cycle Corporation of India (CCIL), Bharat Opthalmic Glass Limited and Mining and Allied Machinery Corporation Limited.

Meanwhile, the generous VRS scheme being worked out involves giving 45 days' wagesfor each year of service completed as against the current 15-day norm. In addition, the Government is also planning to give termination benefits as part of the VRS package. Usually, this is offered after the official liquidation of the company.

The PSUs have been adding to losses for several years now. Take Cycle Corporation for instance. From Rs 4.75 crore in 1991-92, the turnover fell to Rs 19 lakh in 1993-94. But went up to Rs 1.23 crore in 1996-97. On this turnover, CCIL has made losses of Rs 42 crore in 1996-97. The loss figure was Rs 27 crore in 1991-92 and has increased steadily. It has 1,718 employees and the wage bill as a percentage of turnover was a stupendous 1390 per cent.