Financial Daily from THE HINDU group of publications
Wednesday, Oct 13, 2004

News
Features
Stocks
Cross Currency
Shipping
Archives
Google

Group Sites

Industry & Economy - PSU


Cabinet may take up Rs 450-cr PSU revamp package

Ambarish Mukherjee

New Delhi , Oct. 12

THE Cabinet is likely to consider a restructuring package worth Rs 450 crore for weak public sector units in its meeting scheduled here for Wednesday. It is also expected to discuss the proposed National Steel Policy formulated by the Ministry of Steel.

According to sources, the proposed package has three components. Firstly, a decision is expected on which PSUs are not in a position for revival and should be closed down. Second is a decision on which PSUs are in a position to be revived and what needs to be done on that. And thirdly, a decision on the dues of employees in the PSUs that have ceased to operate or are still functioning but are in a precarious financial situation.

Sources said that the proposed package has the clearance from the Ministry of Finance but since it involves large funding, the Cabinet on Wednesday is likely to take up the proposal before giving it a final go-ahead.

Sources said that several PSUs under the administrative control of the Ministry of Heavy Industries are included in the list of PSUs for which an action plan has been formulated by the Government. But they declined to give details.

The Cabinet is also expected to take up the issue of the proposed National Steel Policy 2004. In an informal interaction with the media, the Minister for Steel, Chemicals and Fertilisers, Mr Ram Vilas Paswan, confirmed this.

The draft policy circulated by the Minister earlier stated that, "PSUs in the steel sector will be disinvested in due course of time. A task force shall be constituted to identify the PSUs to be considered for privatisation/disinvestment/dilution of Government ownership. The task force will also suggest strategies to expedite disinvestment process for the units/facilities already identified for this purpose."

This proposal is, however, contradictory to what the Steel Minister has announced repeatedly - that steel PSUs would not be disinvested.

Asked about the recent controversy over live shells found in steel scrap imported by some private sector steel companies, the Minister said that since any one can import scrap, the ministry was not in a position to exercise control over it. But it is a matter for the Customs and Excise Department and national interest should get priority over commercial interests, he said.

More Stories on : PSU

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Stories in this Section
Alert on coconut leaf rot


Brazil pares dumping duty on Indian jute imports
Consultant to draw roadmap for setting up chemical parks
Thought @ the speed of government
Industrial growth at 7.9 pc in August
Karnataka industries `reeling under tax burden'
Iraq invites investment in oil industry
Panel to catalyse Singapore investments in India set up
Chirac's China mission to pave way for major deals
Govt bans rofecoxib sale
Micro Labs dumps rofecoxib drug
Merck effect: Pharma cos scan pain relief options
SBI, LIC come together for funding infrastructure projects
Cabinet may take up Rs 450-cr PSU revamp package
ONGC set to recover dues from Gujarat PSUs
Pharma sector keeping an eye on US poll outcome
Bidding for global projects — PowerGrid ties up with Netherlands co
Melas to widen service tax net at Thiruvananthapuram
New Haryana plan to redress traders' woes soon
Additional export quota
UK bodies to train SME entrepreneurs
Voicing support
CIL targets 445 m.t output by 2011-12
Coal merchants object to be called as C&F agents
`Broadcasters' future lies in content ownership, copyright'
DD gets tough with pvt channels on Olympic footage
15,000 Indian students headed for UK
Ascendas, Mahindra to jointly develop ready-built space near Chennai
Sunil Alagh takes over as AIMA President
`HR person needs the right blend of theory, practice'
Chamber concern over road blockades
Three-pronged plan to boost textiles, clothing industry
`Govt expenses far more rigid than revenues'
In Thiruvananthapuram today
Seminar on asset valuation
In Hyderabad today
Entrepreneurship development programmes in AP
Reports on anti-piracy measures sought
Kanara Chamber submits action plan on tourism development



The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line