Punjab Chief Minister Captain Amarinder Singh said on Friday that his government is planning to divest some of the major public sector undertakings as part of its endeavour to revive the state's economic situation.

Addressing a news conference in New Delhi, Singh said: "We have 29 defunct public sector undertakings and they are all running in losses. Total money that has been locked in is around Rs 8300 crore (Rs 83 billion). Punjab Tourism Corporation, Punjab Alkalies, Punjab Containers, Punjab Communications and PTL are being divested. We have set up a floor price for the divestment of these companies and would shortly be opening tenders for them."

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Questioned on the companies that are in the race for buying these PSUs, Singh said both Indian and foreign firms are bidding to take over these ventures.

" It is for the new management to decide what to do with the employees. They can either give them a golden handshake or retain them," he said.

Sugar arrears

Criticising the Union Agriculture Minister Rajnath Singh for denying money to the Punjab government for clearing the arrears of the sugar factories, Singh said the ministry has ear-marked Rs 600 crores (Rs 6 billion) for clearing the outstanding dues of the farmers in Uttar Pradesh, Uttranchal and Haryana.

"While Uttar Pradesh gets Rs 450 crore, (Rs 4.5 billion), Uttranchal and Haryana would share Rs 150 crore (Rs 1.5 billion) to pay the sugarcane farmers.

"We have an outstanding due of Rs 140 crore (Rs 1.4 billion) but our claim has been overlooked. I have written a letter to Prime Minister Atal Bihari Vajpayee on the issue," he said.

World Bank loans

Stating that multi-national agencies have shown keen interest in various projects in the state, the chief minister said: "World Bank has granted Rs 800 crores (Rs 8 billion) for developing the roads in the state.

"We have also got Rs 950 crore (Rs 9.5 billion) for providing drinking water to 9,700 villages in the state. Though 5,800 villages have already got drinking water we want to provide the same to those who have so far not been covered under the drinking water scheme," he said.

Bhatinda refinery

He expressed his concern at the non-utility of 1000 acres of land that has been acquired by the state government for the Bhatinda refinery project.

"We are not sure which company is going to set up the refinery there. We hope the company, which gets the contract would not set up a small plant there. There are about 20 lakh (2 million) youth waiting for jobs.

"All those who are willing to set up shop in Punjab can now get their projects cleared from the single window system, which is headed by the state chief secretary," he said.

He also told the media that his government was keen to set up bio-technology parks in Patiala and Faridkot.

It's destination Punjab

He, however, regretted that though businessmen, wishing to set up industries in Jammu and Kashmir and Himachal Pradesh, have been given Income Tax and excise exemption for the next ten years, the same benefits have not been extended to those coming to Punjab.

He claimed that during the sixteen months that he assumed office, his government has managed to put Punjab's economy back on rails.