New policy to restructure PSUs

The ministry of heavy industries and public enterprise has formed a committee of six joint secretaries to be chaired by the secretary of the heavy industry department to have a fresh look at the 48 ailing public sector units and will decide a fresh divestment list.

Addressing the press in Kolkata recently, Santosh Mohan Dev, minister of state, ministry of heavy industries and public enterprise said that the government would take a fresh look at the various ailing PSU's under the department.

"We will try and revive almost all of these companies where there are scope but the companies are loss making. But for companies which do not have any hope we will have to close them down," he explained.

"After the committee has submitted its report we will enter into discussions with the management of the companies as well as the trade unions. We will also have to take a view from the experts," he said. Following which the ministry would prepare the divestment list.

"We have also asked the finance department to allow us budgeted as well as non-budgeted funds for these ailing companies," he added. He however declined to divulge the quantum of fund he had asked from the finance ministry.

"Further divestment of all the 9 profit making PSU under my department has now been ruled out," he explained.

The minister also said that his department would ask for protection for these companies till such time them return to the black.

Citing example he said, "We have asked for price protection and order for the wagon industry. We will also ask for protection for companies like Scooters India, Heavy Engineering Corporation, and HMT."

Among the 48 companies that the department commands "" there are three companies that were to be wound up, 16 at various stages of BIFR. A fresh look into all of these would be taken.

He also said that the ministry was thinking of a mechanism so that revival schemes were strictly implemented.