Business Daily from THE HINDU group of publications
Tuesday, Oct 31, 2006

Cross Currency

Group Sites

Industry & Economy - PSU
States - Kerala
PSUs may become more autonomous

Our Bureau

The Centre has already granted `some' functional autonomy to the PSUs.

Thiruvananthapuram , Oct. 30

The issue of granting more functional autonomy to public sector undertakings will be taken up at the next meeting of the Group of Ministers, according to the Union Minister for Heavy Industries and Public Enterprises, Mr Sontosh Mohan Dev.

Speaking to newspersons here on Monday, Mr Dev said that the meeting of a Group of Ministers chaired by the Union External Affairs Minister, Mr Pranab Mukherjee, would be held on November 13.

Other Issues

The autonomy to the boards of PSUs apart, the Group would also consider raising the retirement age of employees to 60 and revival of sick companies.

The Centre had already granted `some' functional autonomy to the PSUs and the boards are empowered to take business decisions and negotiate independently. The board members need not, henceforth, secure the Ministry's clearance for deciding on each and every issue.


The performance of those companies, which had been given functional autonomy, was encouraging, he said.

The Centre had proceeded with revival plans for some sick companies and had cleared salary arrears. Another attempt towards this direction would be tried out soon. It was committed in the Common Minimum Programme of the UPA Government and there would be no retrenchment, Mr Dev pointed out.

Asked whether the Centre planned any substantial investment in the State, Mr Dev said a proposal for the Hindustan Newsprint Ltd (HNL) was being considered, but specifics had not been worked out. The HNL Chairman, Mr Raji Philip, who was also present, said that the expansion-cum-development project launched by the Minister would be completed by August 15 next year.

The project aimed at enhancing the production capacity by 1.70 lakh tonnes per year by diversifying into premium grades of writing and printing paper.

It also envisaged the installation of a de-inking plant with a capacity of 200 tonnes per day and a captive power plant with a capacity of 25 MW. The capital outlay would be around Rs 718 crore. The funds would be generated through loan and internal accruals, he said.

More Stories on : PSU | Kerala

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

Stories in this Section
Modi plans integrated township policy for Gujarat

Hamburg offers expertise in sustainable development
Micro-turbine biogas project commissioned in Purulia
Sensex at new high, tops 13,000
AP plans survey to assess role of trading in GSDP
RBI rate hike a given
Review meeting
Singapore's four-day biz meet inaugurated
Prince Andrew, Minister discuss trade issues
South Australia, TN sign sister-State agreement
India-China border trade slow off the blocks
MIDC, IL&FS woo AP pharma entrepreneurs
`SEZ will come up at Kakinada'
PSUs may become more autonomous
Steps to tackle power crisis in AP
TN to repeal General ST Act
Visa-free entry for businessmen in US urged
Sun TV plans more FM stations
IIT Kharagpur plans new campus in Kolkata
NSHM ties up with Swiss co
Finishing schools for engg grads suggested
`Engineering students communication skills below expectations'
Land issue
Traders down shutters in Delhi
Salary hike for IIM Bangalore faculty
Offer letters at Managemantra
`Yi aims to emerge as voice of young Indians in nation-building'
`Enjoy your job, be successful'
Corporate social responsibility
White rice exports slow down on Pakistan factor
Venture funds: Singapore `looking at India'
Jupiter Capital's plans
Budget tourism package
Master plan to revive inland water transport in Kerala

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

Copyright 2006, 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