Wednesday, December 2, 2015

NDA government to shut TCIL, HMT unit

Union minister Geete 
THE NDA government is mulling closing sick Tyre Corporation of India Ltd (TCIL) and a unit of loss-making HMT. But the government that is yet to come out with any concrete policy on reviving the lose making PSUs has at the same time...
ruled out any divestment in sick CPSEs. Recently, minister for heavy industries and public enterprises Anant Geete said that TCIL and a unit of HMT were being considered for closure. However, he did not divulge which unit of HMT was being considered for closure. The minister also said the government had no plans to set up a land bank using surplus land of PSUs.
Geete also said that the ministry would not be going for disinvestment of other such loss-making PSUs. He added individual proposals would be prepared for those that were approved for closure earlier.
Interestingly, TCIL is one of the PSUs that had earlier been cleared for revival through a joint venture (JV) or disinvestment. Based in West Bengal, the PSU entity reported a net loss of more than Rs 20 crore in 2011-12.
The Cabinet had earlier given in-principle nod to shut down five ailing CPSEs — including HMT Bearings, HMT Watches, HMT Chinar Watches, Tungabhadra Steel Products and Hindustan Cables. The heavy industries ministry has now firmed up individual proposals and will again approach the Cabinet for a final nod.
The government has proposed a long-term rationalised tax and duty structure to promote the capital goods sector to realise the Prime Minister's Make in India initiative.
A National Capital Goods Policy was formulated to increase the share of capital goods contribution to 20 per cent of total manufacturing activity by 2025, from 12 per cent, said the draft policy released by the Department of Heavy Industries.
Earlier, the Prime Minister’s Office (PMO) has stepped into the process of divestment, wanting a clear roadmap for 58 loss-making Public Sector Enterprises. The Centre has already decided to close five of these units immediately, 11 will stop getting non-budgetary support. The PMO has asked the cabinet secretary to get an action plan ready for either the revival or the closure of the rest within a month.
The cabinet secretary has moved a note asking the department of disinvestment (DoD) to become the nodal ministry and take control over the entire process of overseeing the revival or closure of the sick PSUs.

1 comment:


    In July 2014 , Rangrajan Committee defined the " Poor " in India as , following persons :
    * In Rural areas ............. those whose daily expenditure was Rs 32 or less
    * In Urban areas............ those whose daily expenditure was Rs 47 or less
    That methodology placed below poverty line ( BPL ) , 363 million persons
    Recently , NITI Aayog has come up with a cut-off point of 40 % of the expenditure curve , which places 484 million Indians below poverty line ( 48.4 crore persons )
    Now , if NDA government were to close down / shut down 53 loss making Public Sector Units ( PSUs ) , it would save , Rs 53 Crore , DAILY ( Approx Rs 20,000 Crore every year )
    That is a little more than Re 1 / - per poor person per day
    Not much to feed his / her starving stomach
    But enough to take out for each of them , that Medical Insurance , announced some time back , with much fanfare !
    Now , if NDA government were to sell off the assets of these 53 loss making units ( mostly the land on which these are situated ) , it may even succeed in raising Rs 10,000 crores
    It is high time NDA starts working for the poor , instead of paying Rs 20,000 monthly salary to a few thousand workmen , who have no work and pass their time playing cards on the shop floors of these factories !
    If you have any doubts re my statement , just ask any TV channel to send an investigative reporter with a hidden web cam on the shop floors of these factories !
    You will see the pathetic situations of , what Pundit Nehru liked to call , these " Temples " of modern India
    Temples from where the " Gods " of Productivity have left and parasite " Poojaris " reign supreme !

    hemen parekh
    23 Dec 2015