NEW DELHI :
The federal government is discussing the way forward for a number of money-losing public sector undertakings (PSUs) underneath the ministry of heavy industries, with choices together with the closure of those items being thought-about, two authorities officers aware of the event mentioned.
The opposite choices embrace restructuring and disinvestment of those corporations, the officers mentioned, requesting anonymity.
The discussions observe current unsuccessful efforts to promote a few of these loss-making entities.
Final yr, the federal government accredited the closure of Scooters India and Bharat Pump and Compressors Ltd. In 2015, the federal government shut Tungabhadra Metal Merchandise Ltd, adopted by HMT Watches, HMT Chinar Watches, and HMT Bearing in 2016.
One of many officers cited above mentioned the ministry has acquired strategies throughout its discussions, and it’s engaged on these.
“We’re discussing all of the choices,” he mentioned.
The annual report of the division of public enterprises confirmed that there are 29 corporations underneath the executive management of the division of heavy industries, out of which 17 are nonetheless working.
Among the many working corporations, six are worthwhile, whereas 11 are working losses. Among the many remaining 12, 5 have been non-operational, and 7 have been shut down. Fourteen of the 29 corporations are underneath liquidation.
The worthwhile corporations embrace Engineering Initiatives (India) Ltd, Braithwaite, Burn & Jessop Building Ltd, HMT Ltd, HMT (Worldwide) Ltd, Richardson and Cruddas (1972) Ltd and Bridge & Roof Co. (India) Ltd, in response to the annual report.
The loss-making entities embrace HMT Machine Instruments, a subsidiary of HMT Ltd, Rajasthan Electronics and Devices, Bharat Heavy Electricals Ltd (Bhel), NEPA, Hindustan Salts, Sambhar Salts, Andrew Yuletide and Co. Ltd, Heavy Engineering Corp. Ltd and Cement Corp. of India.
Queries emailed to the spokesperson for the ministry of heavy industries on Sunday afternoon didn’t elicit a response until the time of publishing.
Mint reported on 8 February 2021 that India might think about promoting stakes in Bhel, Mecon Ltd and Andrew Yuletide amongst different candidates.
Bhel is the biggest entity underneath the ministry, with a gross asset worth of ₹6,645 crore as of 31 March 2020.
Within the December quarter, Bhel reported a revenue of ₹14 crore towards a lack of ₹231 crore within the yr earlier.
Curiously, the corporate is now venturing into a brand new section, auto part manufacturing. It lately featured among the many corporations accredited underneath the production-linked incentive (PLI) scheme for auto elements, rolled out by the ministry of heavy industries.
Stressing on the federal government’s efforts to revive loss-making state-run corporations, the second official mentioned, “It’s a relentless course of. We preserve find out how to enhance the businesses that are working into losses.”
The push for the long run roadmap of the loss-making PSUs comes when the federal government has introduced within the new public sector enterprise coverage underneath which the strategic switch of possession of Air India has been accomplished after substantial efforts and delay.
For the subsequent fiscal, the Centre has set a disinvestment goal of ₹65,000 crore. The goal for this fiscal has been slashed to ₹78,000 crore from the preliminary projection of ₹1.75 trillion.
Supply: Live Mint