New Delhi, Sep 16 (IANS): The union cabinet on Wednesday approved introduction of an improved Voluntary Retirement Scheme (VRS) for the employees of Hooghly Dock and Port Engineers Limited (HDPEL) and restructuring of the company through a joint venture (JV).

"The improved VRS package is based on IDA 2007-linked pay scale. The improved VRS scheme would be open for three months with a provision of extension by another one month. After the implementation of the improved VRS, JV formation with the private sector would be attempted failing which the company would be disinvested," an official statement issued after a meeting of the union cabinet here said.

Implementation of the improved VRS package would substantially reduce the manpower of HDPEL and would help in down-sizing. Thereafter, HDPEL would become amenable to restructuring, it said.

The current VRS package is at the old pre-revised scale. Therefore, implementation of an improved VRS package would provide better retirement benefits to the HDPEL employees who opt for it, the statement said.

The decision will take care of employees' welfare as well as prevent recurrent loss to the public exchequer, it added.