Water transport PSU divestment on cards

The government is planning to partially privatise the loss-making Central Inland Water Transport Corporation (CIWTC). The corporation's ship-building division is likely to be taken over by Goa Shipyard under the defence ministry while its inland water transport division will be put up for sale.

Board for Reconstruction of Public Sector Enterprises (BRPSE) and the shipping ministry would jointly go to the Cabinet for approval, ministry officials said. The government owns 99.98 per cent equity in CIWTC which is proposed to be divested through a strategic sale.

Sources said the proposal was that the Goa Shipyard would take over the Rajbagan Dockyard along with its liabilities. Earlier, it was proposed to let the Goa Shipyard take over only the management to turn the company around. But the shipping ministry had insisted that the defence ministry took over the complete possession of the dockyard along with its debt.

Officials added that the CIWTC would sell some of its assets, that would yield about Rs 35 crore, to fund its voluntary retirement scheme.

The shipping ministry had earlier proposed that the entire corporation be privatised. The Cabinet, however, referred the case to BRPSE to examine the possibility of its revival. It had explained in its proposal that CIWTC was proving to be drain on its resources. Also, the corporation had not been able to use the earlier revival package satisfactorily.

Of the total Rs 140 crore sanctioned under the four-year restructuring package in 2001, the Centre was to provide a support of Rs 76.5 crore while the rest was to be raised from sale of assets. However, the corporation had not raised its own resources via sale of assets. The Centre had, in fact, pumped in more than 120 crore, with no perceptible result, the ministry official said.

The shipping ministry had earlier asked the West Bengal government to take over the corporation. When it refused, the ministry decided to go in for privatisation. Offloading plans

• CIWTC's ship-building division may be taken over by Goa Shipyard, inland water transport division to be sold
• Government owns 99.98 per cent equity in the PSU
• CIWTC would sell some of its assets to raise Rs 35 crore to fund its voluntary retirement scheme
• Of the total Rs 140-crore revival package sanctioned for it in 2001, the Centre was to provide Rs 76.5 crore but ended up giving more than 120 crore