Need to improve performance of PSUs: Patel

Heavy Industries and Public Enterprises Minister Praful Patel today underlined the need to improve the performance of the PSUs as large amount of public funds are invested in these companies.

The ministry has taken a number of steps like enhancement of delegation of powers to the profit-making PSUs and setting up of the Board for Reconstruction of Public Sector Enterprises to revive the sick companies, an official release said.

The government approved the revival of 40 CPSEs and closure of two sick units, as on February 28, 2011, Patel informed the Parliamentary Consultative Committee on Heavy Industries and Public Enterprises.

Thirty-two public sector enterprises, under the Department of Heavy Industry, have recorded an aggregate production of Rs 33,308.15 crore during April-January 2010-11, registering about 20 per cent growth over the last fiscal, the Committee members were informed.

These companies have shown an overall profit (before tax) of Rs 3,454.40 crore in the first 10 months of the current fiscal.

The members also discussed other issues like disinvestment in PSUs, retirement age and revision of wages of the public sector employees.

Meanwhile, Standing Conference of Public Enterprises Chairman Arup Roy Choudhury stressed upon the need to provide equity, in terms of salary and wages, for sick CPSEs.

The government should allocate the budget directly either to the Department of Public Enterprises (DPE) or to BRPSE as all the revival packages are recommended by the BRPSE, he said at a 'Turnaround Award 2010' function.

Choudhury, who is also the Chairman and Managing Director of NTPC, offered handholding to turnaround sick units who have business synergy with the power major.

SCOPE Director General U D Choubey said that PSUs should invest in innovation and R&D to be at par with the global companies.