Bengal to close down WB Projects

As a part of the second phase of restructuring public sector undertakings in West Bengal, the public enterprise department has decided to close down West Bengal Projects Limited, a china clay and washery unit spread across 15.82 acres in Birbhum.

The closure had been recommended by the government-appointed consultant, Matt Mac Donald, which recently filed a report on state-owned public sector enterprises (PSEs).

The agency had also suggested closing down Basumati Corporation, a state-owned publishing and newspaper company.

However, the government was yet to decide on shutting down the operations and proceeding for liquidation of operations.

"We are yet to decide on closing Basumati Corporation, but we have decided to close West Bengal Projects because it was unviable and loss making for last few years. The unit employs less than 100 workers" said Ardhendu Sen, secretary of the public enterprises department of West Bengal.

The two companies were among the 20 PSUs identified by the government for restructuring last year.

Apart from this, the report suggested privatisation of 11-odd PSEs. Matt Mac Donald report had supported the government's established policy of placing PSEs in three categories "" the first for retaining and restructuring, second for converting them into joint ventures and third for closure.

The viable projects were likely to get funding from UK's Department for International Development (DFID) under anti-poverty schemes that allowed the state to retire workers of selectec units so that the assets could be sold to investors, and at the same time ending the subsidy payments to them so as to release funds for social sector programmes like public health and education and poverty alleviation.

In 2005-06, DFID disbursed Rs 1,940 crore of UK development assistance fund in India, out of which its assistance to West Bengal was Rs 243 crores in the year.