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Rediff News  All News  » Business » Orissa to privatise 10 functioning PSUs

Orissa to privatise 10 functioning PSUs

December 10, 2002 16:20 IST

The Orissa government has decided to privatise 10 functioning public sector undertakings and cooperative enterprises during the current financial year.

The assets of an equal number of defunct PSUs were also proposed to be sold during the year, Minister for Industries, K B Singhdeo told the state assembly on Tuesday.

Replying to a question the minister said of the 10 functioning PSUs to be disinvested, valuation of six had been completed. These included the ferrochrome unit of the Industrial Development Corporation of Orissa Ltd, Cooperative Spinning Mills of Nayagarh, Badamba and Baragarh, Kalinga Spinning Mills, Dhenkanal and Gopi Spinning Mills, Baliapal.

The exercise was underway in respect of the other four identified PSUs, he said.

Singhdeo said three firms had been engaged to undertake valuation of the 10 defunct PSUs proposed to be sold.

Replying to supplementaries, the minister said a sum of Rs. 35.41 crore (Rs 354.10 million) had been invested by the state government in the 10 defunct PSUs, whose accumulated loss now stood at Rs 75.87 crore (Rs 758.7 million). Besides, an amount of Rs 850,000 was being spent every month for maintenance of these units, he said.

Singhdeo said the state government had signed an MoU with the Centre for privatisation of some other enterprises, but no final decision had been taken in this regard.

He claimed that the state government followed a transparent method as per the central government guidelines to determine the value of the units to be privatised.