Ministry Identifies 9 Sick Psus For Closure

National Bicycle Corporation of India, Tannery & Footwear Corporation of India, Bharat Ophthalmic Glass, Weighbird India Ltd, and Bharat Process & Mechanical Engineers are likely to be among the nine PSUs identified by the industry ministry for closure. The closure could come about as early as December.

According to industry minister Sikander Bakht, the ministry has identified nine PSUs under the department of heavy industry for closure.

"The BIFR has recommended that nine units are such which are not revivable," the minister said in an interview to a private television channel.

The, minister, however did not reveal the name of these units.

 

According to BIFR sources, the five PSUs _ along with three others _ have been recommended for winding up by the BIFR. These three are Mining & Allied Machinery Corporation (MAMC), Tyre Corporation of India and Mandya National Paper Mills.

While employees of MAMC have obtained a stay order against the winding up proceedings, both Tyre Corporation of India and Mandya National Paper Mills have, in fact, been shortlisted for potential joint ventures by the ministry and government approval obtained in this regard.

In another two cases of Cycle Corporation of India Ltd and National Instruments, the BIFR has prima facie concluded that these units are non-viable and should be wound up. However, the final BIFR decision is still awaited.

According to sources, these two are also likely to find a place in the PSU closure list.

Out of the 48 PSUs under the department of heavy industry, 23 had been referred to the BIFR.

The BIFR sanctioned revival plans in nine of them, and the government agreed to provide fresh infusion of Rs 382 crore and financial restructuring to the extent of Rs 1535 crore.

However, according to BIFR sources, only eight PSUs have been recommended for outright winding up as opposed to the nine cited by the industry minister.

"The ministry might formulate itsown view in PSU cases still under inquiry and submit a proposal accordingly in its capacity as a promoter," said a highly placed BIFR official.

"That proposal has a definite bearing on the outcome of these cases."

In the four PSUs still under inquiry, only Burn Standard Company Ltd has not been indentified for a potential joint venture.

The government approval for potential joint ventures in the other three units under inquiry _ Instrumentation Ltd, Cement Corporation of India, and Hindustan Photo Films _ has already been obtained.

In fact, the joint venture partner selection process is already on in the case of Instrumentation Ltd.