Sick PSUs to be revived through JVs: Vilasrao Deshmukh

Steps are being taken to revive sick public sector units (PSUs) through joint ventures with profit-making ones and other industries, Heavy Industries Minister Vilasrao Deshmukh said here today.

As many as 17 of the 32 industries in the public sector were sick, and the ministry would take steps to revive them through joint ventures on the lines of HMT and HTL, Deshmukh told reporters.

As these companies were set up by former prime ministers Jawaharlal Nehru and Indira Gandhi, the government does not want to close them, he said, adding that there was the need for a policy change to restructure these companies and bring them back on track.

If any industries -- public or private -- came forward with new technologies, the ministry would be willing to provide necessary assistance to start a JV, he said.

Deshmukh, who had come here on a private visit, said that the government has already provided Rs 30 crore as working capital for the revival of the ailing Hindustan Photo Films (HPF) company here.

"The ministry has also worked out a package of Rs 302 crore for clearing bank debts and salary arrears of the company, which has a debt of Rs 7,000 crore," he said.

Stating that the employees were still drawing salaries based on the 1989 scale, Deshmukh said a 50 per cent ad-hoc payment would be given to them soon.

HPF would start production of 'colour inject papers' in the near future, he said, adding that he would recommend x-ray films produced the company to government hospitals in Maharashtra and southern states.