3 PSUs to be revived via alliances

The proposal to induct joint venture partners Andrew Yule Corporation Ltd (AYCL), Bharat Pumps and Compressors Ltd and NEPA Ltd will be taken up by the Board for Reconstruction of Public Sector Enterprises to be constituted soon.

The ministry of heavy industry has shortlisted these public sector undertakings for revival through the joint venture route, which was endorsed by the Union Cabinet last week.

Ministry officials said that these PSUs had been put on the joint venture track by the erstwhile National Democratic Alliance government. Privatisation of these companies is being touted as "a privatisation model of the government", said an official.

"It was felt that these PSUs could not do without a change in their boards. Management expertise was needed to be infused into these organisations," said an official.

Bharat Pumps and Compressors Ltd. and BPCL cater to the need of sectors like oil, fertiliser and chemicals for various types of pumps and compressors. Both these companies have been referred to Board of Industrial and Financial Reconstruction (BIFR).

The company's revival plan sanctioned by BIFR has not been successful. It had a negative networth at Rs 113.54 crore at the end of March this year. BPCL ended 2003-04 with a production of Rs 47.26 crore.

A US-based company has evinced interest in BPCL.

NEPA Ltd, formerly the National Newsprint & Paper Mills Ltd was initially set up in 1947 in the private sector. Eventually was taken over by the state government. The Centre acquired controlling interest in 1959 by conversion of loans into equity and it became a Central PSE.

The company became sick and was referred to BIFR. It had accumulated losses to the tune of Rs 246.62 crore as on 31.3.04. The erstwhile disinvestment commission recommended financial restructuring, apart from strategic sale of 51 per cent to 100 per cent of equity. A newspaper from Madhya Pradesh has shown interest in the PSU.

The Andrew Yule group includes a subsidiary, Hoogly Printing Company, two major associate companies----the Dishergarh Power Supply Company Ltd and the Tide Water Oil Company Ltd.

The previous government had decided to sell off its subsidiaries of AYCL Tide & Hoogly, to plough back Rs 47 crore out of the sale into AYCL. The government had in an earlier Rs 170 crore revival package, put in Rs 42 crore in the PSU, said a ministry official.

The company is engaged in manufacture, sales and servicing of various industrial products like fans, tea machinery, air pollution control equipment, electrical equipments including switchgears and circuit breakers .

The company's Belting Division has been converted into a JV company from 1999 with Phoenix, AG Germany holding 26 per cent of the equity in the new company.