27 loss-making PSUs may turnaround in FY06

The fiscal year 2005-06 could literally be a turning point in the history of Indian public sector companies with 27 loss-making state-owned companies expected to make profits this year.

Prahlad Kumar Basu, chairman of Board for Reconstruction of Public Enterprises (BRPSE), said: "As many as 27 under performing companies are expected to report net profits in 2005-06."

Some of the companies set to report a turn-around include Bharat Pumps and Compressors, Bharat Coking Coal, Eastern Coalfields, Heavy Engineering Corporation and Mecon.

Others in the list include HMT, Praga Tools, Bharat Bahri Udyog, Bridge and Roof, BBJ Construction, Braithwaite and Company, Bharat Wagon, Tyre Corporation, FACT, Hindustan Shipyard, Hindustan Antibiotics, Hindustan Organic Chemicals and Hindustan Insecticides.

If the managements deliver on their promises, the number of loss-making public sector companies, which stood at 88 as per the Public Enterprises Survey, will come down drastically soon.

The turnaround of these companies has been possible after BRPSE examined them and suggested measures for improving their performances.