THERE seemed to be some glimmer of hope
for the sick PSUs reeling under massive losses and facing shut down
when a committee headed by NTPC chairman Arup Roy Choudhury submitted
a report earlier this month advocating involvement of some...
profit-making central public sector undertakings (CPSEs) in aiding
the revival of the sick ones.
However, that thin hope now seems to
have fizzled out with the cash-rich PSUs showing unwillingness to
spend money in reviving their sick brethren.
The report has already been submitted
to the ministries of public enterprise and heavy industries.
Now, after the report was submitted,
the revival package outlined by the Arup Roy Choudhury committee
hangs in balance since the latter are not keen on extending any such
lifeline.
The cash-rich PSUs on whom the revival
plan rests are not very keen on the proposal as they are unsure about
its feasibility, a media report quoted a government official as
saying.
The report that draws heavily from
similar plans in countries like Russia and China proposes formation
of an asset restructuring company (ARC) with the help of capital from
CPSUs sitting on a pile of cash. According to estimates,
profit-making CPSEs have a cash pile in excess of R1.6 lakh crore
with ONGC, NTPC, Fertiliser Corporation, Coal India and Bharat Heavy
Electricals topping the list of profit-making CPSEs.
On the other hand, BSNL, MTNL, Air
India, Chennai Petroleum and Hindustan Photo Films are the top five
loss-making CPSEs.
The ARC will be managed by a
professional management team that would be drawn from both the public
and private sectors, and the body will have the discretion to decide
on revivable units and take only those units on board.
These sick units will act as
subsidiaries of the umbrella holding body of the ARC. The companies
that put money in the ARC will get a proportionate share of profit if
and when the sick unit start earning it.
The decision to divest the subsidiaries
from the parent body (ARC) will be taken according to parameters to
ensure that the revived units do not fall back into the rut. The
proceeds from the divestment will again be shared among the
stakeholders of the ARC.
According to the official definition of a
sick PSU — a unit with annual accumulated losses exceeding half
its net worth — there are 61 sick CPSEs.
good decision but it will take 5 to 10 years.
ReplyDeleteBRPSE had recommended implementation of the 1997 pay scale for the employees of HPF as a part of the revival proposal of the company. “There is a proposal for diversification and modernisation as a part of the revival proposal,” he added.
ReplyDeleteThe revival proposal of HPF involves diversification into IV fluids, colour paper, digital films and non-silver films by using the existing infrastructure with modifications and installation of minimum additional facilities.
The minister said that Rs 9 crore had been proposed for R&D trials to achieve product improvement and new product development. The diversification will be implemented within two years after the revival package of HPF is approved by the government, he said.
Now the SAME BRPSE RECOMMENDED FOR CLOSURE WITHOUT TAKE ANY STEP TO REVIVE THE HPF,DHI ALSO WORKING in same direction towards hpf closure,OUR PM SAYS MAKE IN INDIA-DHI BUREAUCRATS WORKING CLOSURE IN INDIA.GOOD POLICY.
I totally agree with you sir. Thanks for giving different products which HPF can produce on diversification Method. I am interested in this and working on behalf a trade Unions. Can you give some details about the Market demand for Photo Films ?
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