Private, public sector should join hands to improve biz:Patel

Heavy Industries Minister says sick PSUs that cannot be revived should be shut down

Public and private sector should join hands while aiming at improving and strengthening their businesses, Heavy Industries Minister Praful Patel said here today.

"It is important that the public and private sector should collaborate with each other directly or indirectly. They can join hands and should work in area of partnership," Patel told reporters on the sidelines of a CII function here.

On the issue of sick public sector units, he said, the ones which cannot be revived can be shut down.

"We should look at a way to exit these units which do not have the possibility of reviving in the long-run," he said.

However, Patel said here are no immediate plans to undertake such an exercise and ultimately all plans have to be approved by the Cabinet.

He did not disclose the names of the sick units which cannot be revived and said that the government can look at an area of disinvestment, either partly or fully, for their revival.

As on March 31, 2012, there were 64 sick Central Public Sector Enterprises (CPSEs), including Hindustan Cables, HMT Watches and ITI Ltd.

Further, Patel said, there have been numerous discussions on the role of government in business.

"The role of public sector is essential for the growth of Indian economy and cannot be understated," the Minister said.

He said PSUs have an overarching role in industrial development and have cutting edge technology.

However, he said, even those conferred with special status - Maharatna and Navratna-giving them operational and financial autonomy, face problems at times.