33 more state PSEs under scanner

Encouraged by the success of the pilot project to restructure 19 public sector enterprises (PSEs) in the state, the Left ruled West Bengal government will restructure 33 more PSEs under 10 departments which account for over 90 per cent of the loss suffered by PSEs in the state.

They include 22 manufacturing and 11 utility companies having 80,000 employees.

The government has set up an empowered committee of secretaries to oversee the entire process with the public enterprise department, headed by state industry minister Nirupam Sen, acting as the nodal agency.

The committee will present its concept paper to the state cabinet by March 2005.

Following the cabinet approval, the government would take up the task of restructuring.

"We have built popular consensus with the restructuring process. A framework has evolved on the issue. Now the process will be taken forward," government sources said.

So far, the government has taken up 19 companies having 10,000 employees with accumulated losses of about Rs 150 crore for restructuring.

The losses of the 33 PSEs selected now are about Rs 1,700 crore.

The companies include five state transport corporations and two power utilities, which bleed the state exchequer by close to Rs 1,550 crore.

The state has initiated a study on restructuring of transport companies as well the transport sector as a whole banking on assistance from the World Bank.

DFID of UK is funding the study which will be completed by February.

The findings will be assimilated in the concept paper for restructuring.

Bengal will have to approach external donors in a big way.

In the pilot stage, DFID had provided a Rs 220 crore grant to the state government.

The Left Front run state could approach the World Bank and Asian Development Bank (ADB).

PSEs will be divided into three categories.

Companies which can make profits with minor cash infusion will be retained as PSEs.

Those requiring large volume funding would be privatised. Unviable units will be closed down.