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Five sick PSUs asked to shape up

Minister of State for Industry Sukhbir Singh Badal has directed the chief executive officers of five sick public sector undertakings under the department of heavy industries to formulate a strategy for the future, focussing on upgrading and modernising technology.

Issuing a series of directions, while reviewing their performance recently, the minister stressed on the need to improve labour productivity and to realise outstanding dues wherever possible.

While appreciating efforts made by the HMT Limited management to form a joint venture for the tractors division, the minister asked the CEO to explore the possibility of joint venture for the watch division too. For this, he suggested, a consultant could be appointed to look into various aspects like existing market, prospects for growth, product profile and possible joint venture partners.

Badal asked the CEO to expedite the submission of the revival plan to the government, which envisages certain concessions and waivers from financial institutions, besides induction of fresh funds and formation of subsidiaries.

Reviewing the performance of Andrew Yule and Company, the new joint venture of the company's belting division is expected to come into operation in the first week of February. The joint venture company has agreed to take over all employees of the old unit.

Badal agreed to the company's proposal that the revival of the engineering division be considered. The revival plan envisages extension of government guarantees and induction of fresh funds. The other two divisions of Andrew Yule and Company -- electrical and tea -- were reported to be working satisfactorily.

Badal directed the CEO of Bharat Bhari Udyog Nigam Limited, a group of 10 companies, to diversify into new areas like development of special type of wagons, production of port equipment and highway and expressway construction. The company has also been directed to draw up a long-term corporate plan, stressing on long-term viability.

The minister said he hoped that that in view of better results in the current financial year, the losses of the group would be lower than the budget estimates of Rs 597.1 million. The group has visualised the loss of around Rs 400 million in the current fiscal year.

Badal assured the company that he will take up the issue of reduction in wagon order position with the railway ministry in order to ensure that all companies of the group have adequate load.

The minister also directed that BYNL group to prepare a long-term strategy, including diversification of their activities, keeping in view the changing market scenario. He suggested that a suitable joint venture partners for BHVP, BPCL, B and R and TSPL, should be identified to carry on their operation on a sustainable basis.

The minister said government guarantees may be considered to raise funds for voluntary retirement schemes from the market. But that, only if these companies are able to clearly project the viability of such borrowings.

Badal asked the CEO of HEC to explore the feasibility of having joint ventures for their units, either separately or as a whole to ensure the company's long-term viability. He suggested that surplus assets be utilised properly to generate more income.

The HEC CEO said that the company is contacting an American firm and one from Japan to upgrade their products. He said the company has also identified certain surplus assets, and action is being taken to utilise these profitably.

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