Plan panel backs strategic sale in sick PSUs
The Planning Commission has pitched for strategic sale in sick public sector units to help them find a partner for revival.business Updated: Apr 11, 2010 21:20 IST
The Planning Commission has pitched for strategic sale in sick public sector units to help them find a partner for revival.
“We have always said let’s have a strategic sale rather than yet another restructuring ... Most of the time these companies say that if you help us revive, you will get more money,” said Montek Singh Ahluwalia, deputy chairman, Planning Commission at a SCOPE function. “But if you don't get strategic sale, why do you think it will revive... That keeps delaying the decision.”
Ahluwalia said the public sector units should generate resources internally as it would help the government increase its spend on welfare activities.
“They should increasingly get less budgetary support, we need the money for schools, hospitals, building roads and infrastructure... They can generate resources internally,” he said.
The companies, which have turned the corner by posting net profit since 2007-08, include Bharat Pumps and Compressors, Cement Corp, Heavy Engineering Corp and Andrew Yule. The turnaround has been achieved through change in management strategy, government support and reduction of staff strength through voluntary retirement schemes.
The Board for Reconstruction of Public Sector Enterprises was mandated to devise revival schemes.