PSU revamp body weighs Bharat Pumps, BHEL merger

The Board for Reconstruction of Public Sector Enterprises (BRPSE) is studying a proposal for the merger of Bharat Pumps and Compressors into Bharat Heavy Electricals Ltd (BHEL).

Bharat Pumps, which manufactures fluid-handling equipment for thermal and nuclear power plants, had accumulated losses at Rs 157.93 crore.

The Tyre Corporation of India and Coal India were some of the PSEs which made presentations to the BRPSE at its meeting today.

Coal India makes Rs 5,000 crore profit despite subsidiaries Eastern Coalfields and Bharat Coking Coal together accounting for Rs 900 crore in losses.

The BRPSE is also considering options for subsidiaries of HMT. The accumulated losses of the HMT subsidiaries run up to Rs 1,600 crore. The subsidiaries are HMT Ltd (holding company with the tractor division.)

Bangalore, HMT Machine Tools, HMT Watches, Bangalore, HMT Chinar Watches, Praga Tools, Secunderabad and HMT Bearings Ltd. Apart from the main HMT Holding Co. and the HMT International , the net worth of other subsidiaries run in the negative.

BRPSE will soon be taking up proposals from the textile and cement sectors, said officials on the board. Officials of the BRPSE have met the Prime Minister and the commerce minister and are slated to meet the finance minister next week.

In an effort to professionalise the managements of PSEs, BRPSE is planning to create a separate cadre for 2,000 posts in the undertakings.

A National Academy for PSEs on the lines of L'Ecole Nationale d'administration, ENA of France was discussed at the meeting today. It is also exploring the idea of introducing performance-related pay in the public sector and campus recruitments.

Steps will be taken to fill up nearly 100 vacant posts across 240 public undertakings. The priority was to fill up non-executive posts after addressing vacancies at the chief executive level.