The process of closing down the state-owned Bharat Opthalmic Glass Ltd (BOGL) has hit a road-block. | |
| The department of disinvestment has opposed the move citing a 2003 judgment of the Supreme Court, which restricted disinvestment in public sector undertaking that were formed under an Act of the Parliament. |
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| The Board for Reconstruction of Public Sector Enterprise's had recommended the closure of BOGL. |
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| The department of heavy industry would seek a legal opinion to clarify the status of the PSUs that fell within the scope of the judgment, officials said. However, the department felt that BOGL was set up under the Companies Act, 1956 and not under a law passed by the Parliament. |
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| "All PSUs are treated on a single footing, so we have to examine this," an official said. |
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| Officials at the DoD informed the Board for Reconstruction of Public Sector Enterprises (BRPSE) that the verdict of the apex court could be extended to cover the closure of PSUs. |
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| The Supreme Court had directed that in matters relating to PSUs that were nationalised through an Act of Parliament, the government must approach the House with a Bill to either repeal the nationalisation Act or modify it to permit divestment through an executive order. |
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| Senior lawyer at the Centre for Public Interest Litigation, Prashant Bhushan, who had filed a public interest litigation against the privatisation of Hindustan Petroleum and Bharat Petroleum, said the Supreme Court order might not be applicable to the closure of PSUs as it related to disinvestment or "dismantling". However, the DoD officials said "dismantling" of PSUs could also mean to include "closure". |
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| The cost of closure of BOGL is estimated at Rs 331 crore and its revival cost is about Rs 381 crore. The company, registered with the Board for Industrial and Financial Reconstruction since 1992, was recommended for winding up. |
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| The PSU has not been in operation for several years and it had a negative net worth of Rs 322 crore in 2003-04. Off the block The disinvestment department says the SC had restricted divestment in PSUs formed under an Act of Parliament The Board for Reconstruction of Public Sector Enterprise's had recommended the closure of BOGL The department of heavy industry says the PSU was set up under the Companies Act, 1956 and not under a law passed by Parliament |
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