<p>“We have always said let’s have a strategic sale rather than yet another restructuring.. . most of the time these companies say that if you help us revive, you will get more money,” Planning Commission Deputy Chairman Montek Singh Ahluwalia told reporters here.<br /><br />“But if you don’t get strategic sale, why do you think it will revive....that keeps delaying the decision,” he added.<br /><br />Earlier, the Economic Survey for 2008-09 had prescribed that all loss making PSUs which cannot be revived should be auctioned.<br /><br />At present, over 20 state-owned companies, including Hindustan Fertilizer Corporation, Indian Drugs and Pharmaceuticals Ltd and Nagaland Pulp and Paper Company, are chronically sick.<br /><br />Ahluwalia said the public sector units should generate resources internally as it would help the government increase its spend on welfare activities.<br /><br />“They (PSUs) should increasingly get less budgetary support, we need the money for schools, hospitals, building roads and infrastructure...they can generate resources internally,” he said.<br /><br />The government had approved Rs 15,254 crore for the 36 sick PSUs over three years, of Rs 4,877 crore has gone to 14 firms.<br /><br />The companies, which have turned the corner by posting net profit since 2007-08, include Bharat Pumps and Compressors, Cement Corp, Heavy Engineering Corp and Andrew Yule.<br /><br />The turnaround has been achieved through change in management strategy, government support and reduction of staff strength through voluntary retirement schemes.<br /><br />The Board for Reconstruction of Public Sector Enterprises (BRPSE) was mandated to devise revival schemes for the state-owned sick PSUs.<br /><br /></p>
<p>“We have always said let’s have a strategic sale rather than yet another restructuring.. . most of the time these companies say that if you help us revive, you will get more money,” Planning Commission Deputy Chairman Montek Singh Ahluwalia told reporters here.<br /><br />“But if you don’t get strategic sale, why do you think it will revive....that keeps delaying the decision,” he added.<br /><br />Earlier, the Economic Survey for 2008-09 had prescribed that all loss making PSUs which cannot be revived should be auctioned.<br /><br />At present, over 20 state-owned companies, including Hindustan Fertilizer Corporation, Indian Drugs and Pharmaceuticals Ltd and Nagaland Pulp and Paper Company, are chronically sick.<br /><br />Ahluwalia said the public sector units should generate resources internally as it would help the government increase its spend on welfare activities.<br /><br />“They (PSUs) should increasingly get less budgetary support, we need the money for schools, hospitals, building roads and infrastructure...they can generate resources internally,” he said.<br /><br />The government had approved Rs 15,254 crore for the 36 sick PSUs over three years, of Rs 4,877 crore has gone to 14 firms.<br /><br />The companies, which have turned the corner by posting net profit since 2007-08, include Bharat Pumps and Compressors, Cement Corp, Heavy Engineering Corp and Andrew Yule.<br /><br />The turnaround has been achieved through change in management strategy, government support and reduction of staff strength through voluntary retirement schemes.<br /><br />The Board for Reconstruction of Public Sector Enterprises (BRPSE) was mandated to devise revival schemes for the state-owned sick PSUs.<br /><br /></p>
