17 sick PSUs set to be closed down

The Centre has set the stage for the closure of 17 sick public sector units (PSUs), of which four are already under liquidation.

Officials said the Prime Minister's Office (PMO) has approved the closing down and a Cabinet note on the formal closure of the PSUs was being prepared.

The land these PSUs have will be disposed of. Lease-held land will have to be disposed of in keeping with the terms of the lease agreements. But freehold land or those held in perpetual lease will be transferred or sold to a department or organisation of the central government or to another central PSU. Residual land could be sold to the state government concerned or its designated entity at acquisition price minus the cost of rehabilitation and resettlement incurred. If any land is still available, it will be handed over to the ministry under whose administrative control the PSU operates.

Closing down these sick PSUs is part of a strategy to deal with beleaguered government-owned companies. Revival of rest of the sick PSUs and strategic sales in six of them could also be considered.

The 17 sick PSUs include Tungabhadra Steel Products, under the ministry of heavy industries; STCL Ltd (formerly Spice Trading Corporation of India), under the ministry of commerce and industries; Central Inland Water Transport Corporation, under the ministry of shipping; and Hindustan Photo Films and Manufacturing Corporation, under the ministry of heavy industries.

The other companies include Bharat Wagons and Engineering, under the ministry of railways; Bharat Jute, under the ministry of textiles; CREDA (HPCL) Biofuels Ltd, under the ministry of Petroleum; Hindustan Cables Ltd, under the ministry of heavy industries.

For Hindustan Organic Chemicals Ltd (under the ministry of chemicals and fertiliser), officials said the plan was to close nine out of the 14 plants and continue operating the rest.

Companies under liquidation that have been listed for closure are Triveni Structurals Ltd, Tyre Corporation, Hindustan Vegetable Oils Corporation and the Ooty-based Hindustan Photo films Manufacturing Corporation. SICK PSUS TO DOWN SHUTTERS

• Tungabhadra Steel Products
• STCL Ltd (Formerly Spice Trading Corporation of India)
• Central Inland Water Transport Corporation
• Bharat Wagons and Engineering
• Bharat Jute
• CREDA-HPCL Biofuels
• Hindustan Cables
• Hindustan Organic Chemicals (nine out of 14 plants to be closed)
• Hindustan Vegetable Oil Corporation
• HMT Bearings
• HMT Chinar Watches
• HMT Watches
• Indian Oil-CREDA Biofuels
• National Jute Manufactures Corporation
• Triveni Structurals
• Tyre Corporation of India
• Hindustan Photo Films Manufacturing