Search the Internet          Tips  Sites: Finance, Investment

Sick PSUs disrupting growth: Joshi

As many as 100 of the total 240 major public sector units in India were running at huge financial losses for several years, dealing a heavy blow to the growth of national economy at desired pace, Union Heavy Industries Minister Manohar Joshi said in Calcutta on Monday.

Speaking to newspersons after visiting some sick units on Monday morning, said that the government was preparing a series of revival packages for most of these sick units to help them turnaround under a changed economic environment.

He said, about 11 of these sick units existed in West Bengal, of them five would be revived through a well chalked out restructuring process, while six others would have no option but to close down once and for all.

Moreover, in a bid to prevent at least three other PSUs in the state from going into BIFR, the government was trying to opt for joint venture and looking for suitable partners having sound economic health, the minister said.

Categorically denying the allegation that the central government was particularly harsh on the state-based sick PSUs in terms of their revival through divestment process, Joshi said, citing the example of leading railway wagon manufacturer Jessop and Company Limited, said apart from trying to identify a suitable joint venture partner he was personally in touch with Union Railway Minister Nitish Kumar for releasing more order for the unit for the current year itself.

About the restructuring programmes of five state-based heavy industries namely the Hindustan Paper Corporation, Bridge and Roof Corporation, Andrew Yule, BBJ Construction Company Limited and the Bharat Opthalmic Glass Limited of Durgapur, Joshi said it included infusion of more fund, installation of modern machinery and reduction of existing labour forces through attractive VRS package, to be decided on unit to unit basis.

UNI

Money

Business News

Tell us what you think of this report