The Union government on Wednesday constituted a Board for Reconstruction of Public Sector Enterprises.\n\n\n\n
After the government shelved plan to sell out its entire stake in SIL, the Department of Heavy Industry had proposed a revival package of more than Rs 200 crore for revival of the company.
Land resources belonging to ailing companies being pitched to pvt players for new initiatives.
The Board for Reconstruction of Public Sector Enterprises will take up the case of ITI in its next meeting, on May 31.
The government is working on a plan to nurse sick public sector units back to health before any disinvestment takes place in these companies, chairman of the PSUs revamp board Nitish Sengupta has said.
BRPSE's new chairman Nitish Sengupta has suggested that at least three ailing companies, which have been referred to the board, hive off some of their land and get into real estate development to become profitable again.
Coal India, which is likely to hit the capital markets in October, "will be in the list of Fortune 500 the day it is listed on the stock exchange," the head of a government panel on public sector units said on Monday.
The Board for Reconstruction of Public Sector Enterprises wants to examine the grave financial problems of Air India, but neither the Civil Aviation Ministry nor the national carrier has responded to the BRPSE offer.
"Based on the recommendations of the Board for Reconstruction of Public Sector Enterprises, the government has approved revival of 36 CPSEs at a total cost of Rs 15,254 crore, including fresh cash infusion of Rs 2,921 crore."
Finance Minister P Chidambaram on Thursday made a double pitch for public sector companies. First he urged private sector companies to enter into joint venture partnership with PSUs
Even with less than four dozen in number as listed entities, the PSUs account for over 20 per cent share of the overall market capitalisation of the more than 4,000 entities at the bourses.
The erstwhile divestment commission to be now be replaced by the BRPSE.
Either the stake in these companies will be sold or they may partner private firms.
Manufacture will soon be stopped at Bangalore and Tumkur in Karnataka and Ranibagh in Uttarakhand.
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