Bengal hopes to complete PSU sell-off by this fiscal

 West Bengal is keen to restructure 16 of its public sector enterprises (PSEs) and unlike the Centre, it is sticking to a tough deadline.

 "We plan to complete the entire exercise by March 31, 2004. This includes offering majority stake (74 per cent) in 10 companies and also restructure four others," Nirupam Sen, state industry minister, said.

 The ruling Left Front, often criticised for dogmatism in economic affairs, has approached the programme in keeping with globally established norms for sale of such units.

 The government has already closed down two unviable PSEs. It has decided to retain four units but in these the government will not make any further capital infusion.

 "In the first stage, manpower will be reduced by offering early retirement scheme (ERS) to about 2000 employees. In the second stage, new management will be ushered in. In the third stage, a financial restructuring will be carried out. The idea is to make them credit worthy enough so that they could borrow from financial institution for future requirement. State government will not bring any fresh capital. They have to stand on their feet," Sen pointed out.

 Another 10 companies have been put up for sale. In these, the process has also gained momentum. The government has shortlisted bidders and referred their names to company management where they have evinced interest.

 The mandatory data room is now being created to facilitate due diligence which is expected to be completed during January-February. Price bid will be called in early March and the stake sell to be completed by end March.

 So far the government decisions have not sparked off any battle with workers and unions, unlike what happened at the Centre. This was in part because of transparency and discipline with which state has embarked upon the programme, industry watchers feel.

 The government has also managed financial aid from DFID of UK for creating a safety net for the retrenched workers.

 That the government cares for its employee, has percolated down the shopfloor. DFID was backing the programme because it felt it had an anti-poverty angle and would release funds for the social sector.