PSUs growing at fast pace despite slowdown: PC

Union Home Minister P Chidambaram today said public sector undertakings (PSU) like Bharat Heavy Electrical (BHEL) were growing at a fast pace despite the economic slowdown.

"BHEL has a fat order on its hand, and also expansion programme," he said.

Asserting that the UPA government was not against the private or public sector, as it wanted development through both, he said Centre had taken a "practical stand" when it decided to rehabilitate 20 public sector units that fell sick over the years.

He was speaking after laying the foundation stone for the Rs 250 crore BHEL factory, coming up at Olaipatti village, near Tirumeyyam in Pudukottai district.

BHEL Chairman and Managing Director K Ravikumar said the factory, which would make heaters and economiser coils and loose tubes for boilers of different capacities, would have a turnover of Rs 500 crore a year, and would come up in a 100-acre site.

It would provide direct employment to 750 people and indirect employment to 3,000. The site for the factory was chosen on the advice of Tamil Nadu Chief Minister M Karunanidhi, he said.

The CMD said there was no timeframe set for commissioning the factory, though it was expected to be commissioned by 2011.