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Patil urged to reconsider divestment of Jessop

Member of Parliament Dipankar Chatterjee has urged Heavy Industries Minister Balasaheb Vikhe Patil to reconsider the divestment of Jessop, Burn Standard and Braithwaite and allow these to run as PSUs after necessary restructuring.

In a letter to the minister, Chatterjee said financial restructuring, coupled with substantial reduction in manpower, has made the companies "very much viable" if order of wagon and coaches was ensured with need-based working capital.

Expressing concern over the proposed divestment of the said companies, he said "distress sale" of the PSUs at the present juncture would lead the wagon manufacturing industry to a state of turmoil, which was witnessed in the '70s, prior to nationalisation of these units.

"Lack of order and cut throat competition among unscrupulous private promoters at that time resulted in sickness and closure of a number of wagon making units, necessitating nationalisation of Jessop, Burn Standard and Braithwaite," he said in the letter.

UNI

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