Loans, not grants, to sick PSEs for salary payment: Minister
Press Trust of India / New Delhi Jul 21, 2009, 15:56 IST
The government today said budgetary support to sick and loss making public sector enterprises were given not in form of grant but as loan for payment of salary, wages and statutory dues so that these units improve their performance.
Replying to supplementaries during Question Hour, Heavy Industries and Public Enterprises Minister Vilasrao Deshmukh said assistance given by government to such sick units is treated as loan so that companies improve their performance.
"Once they improve their performance, we stop giving them assistance," he said.
The minister said assistance is provided to sick units that are unable to pay salaries and wages due to their poor financial condition, and whose revival plan is still under consideration of the government.
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