The government today approved the restructuring of beleagured public sector entity Bharat Bhari Udyog Nigam Ltd (BBUNL) to improve the functioning of its units in Tamil Nadu and West Bengal.
As part of the revival package, administrative control of the two subsidiaries of BBUNL — Burn Standard Company (BSCL) and Braithwaite & Co — will be transferred to the railway ministry from the heavy industries and public enterprises ministry, a long-pending demand of Railway Minister and Trinamool Congress chief Mamata Banerjee.
Today’s decision — approved by the Cabinet Committee on Economic Affairs (CCEA) — shows that the Trinamool chief has emerged stronger in the second United Progressive Alliance (UPA) government following her emphatic win in the recent civic polls in West Bengal.
Within hours of the announcement of the poll results last week, the UPA government, in which the Trinamool Congress is the largest ally, ordered a CBI probe into the Jnaneshwari Express train accident, adhering to the demand of Banerjee.
The Cabinet approved the ownership transfer of BSCL and Braithwaite even as it held back two proposals of disinvestment in Coal India and Hindustan Copper Ltd, a move opposed by Banerjee.
While the wagon-making units of BBUNL will come under the railway minister, the refractory unit of BSCL at Salem in Tamil Nadu will be given to Steel Authority of India Ltd (SAIL). Another subsidiary, Braithwaite, Burn and Jessop Construction Co, will be merged with BBUNL.
As part of the financial restructuring of BSCL, the government has waived the interest payment of Rs 639.15 crore and has notified that no further interest would be levied beyond the cut-off date of March 31, 2009. The restructuring will also include conversion of plan loan of Rs 31.7 crore, non-plan loan of Rs 350.82 crore and zero rate debenture of Rs 75.03 crore given to BSCL into equity.
“Transfer of the wagon-making companies to the railways will help the companies to become commercially viable. Upon transfer to SAIL, the Salem unit of BSCL will have access to funds for modernisation and capacity expansion,” Home Minister P Chidambaram said after the CCEA meeting.
Digitising state treasuries
The government also approved the project for computerising state treasuries in order to enable online linkages between treasury and headquarters. The proposed investment in the project is Rs 626 crore which will cover 626 districts, Information and Broadcasting Minister Ambika Soni said after the Cabinet meeting.
International airport in Goa
The Cabinet also approved the commissioning of a greenfield international airport at Mopa in Goa.
The Cabinet also approved the Planning Commission’s proposal to place before the National Development Council the Mid-Term Appraisal document of the Eleventh Five-Year Plan.
