Wagon makers Braithwaite & Co and Burn Standard are likely to be amalgamated with Railways and their accumulated losses waived off.
Mamata Banerjee, on Friday, indicated that her ministry was in a dialogue with the ministry of heavy industries for this. Although details are awaited, sources said both companies could be shifted from under the ministry of heavy industries to the rail ministry.
“Both the companies and the two ministries concerned are public sector entities. So, in all probability, both companies will retain their corporate identity and be transferred to the rail ministry,” a source said on the condition of anonymity.
It is learnt that the Railways is looking to amalgamate another company, BBJ & Construction Company, into itself as well. All three are subsidiaries of the erstwhile PSU giant, Bharat Bhari Udyog Nigam Ltd (BBUNL). Another sick BBUNL arm, Jessop, had been divested to the Ruia Group.
While the core business of Braithwaite and Burn Standard is wagon manufacturing, BBJ is involved in design and construction of a variety of bridges in India, including the famed Howrah Bridge and the Vidyasagar Setu in Kolkata.
All three had been ailing for over a decade and about one and-a-half years ago the Board for Reconstruction of Public Sector Enterprises (BRPSE) had suggested they be transferred to the Railways.
A BRPSE member said, “All 3 were sick and did not always have enough working capital…the board had suggested that the Railways either take over the sick companies or work closely with them, providing working capital, placing orders much in advance so they could garner working capital in advance and the production process remained smooth.”
However, the BRPSE member said, “The Railways had not been too positive about the recommendations at that time.” Now, the Railways seem to be seeing things differently.
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