PSU reconstruction board backs listing of profitable cos
The Board for Reconstruction of Public Sector Enterprises (BRPSE) feels any PSU “with a record of profitability” should get listed on stock exchanges
The Board for Reconstruction of Public Sector Enterprises (BRPSE) feels any PSU “with a record of profitability” should get listed on stock exchanges, chairman Nitish Sengupta said in Kolkata on Tuesday.
“Take for example, CIL or BSNL… even if the government divests 5% in them, they will walk straight into the Fortune 500 list,” Sengupta said. At present, there are 240 central PSUs; 160 of them in profit.
BRPSE, a brainchild of Prime Minister Manmohan Singh, was set up to advise the government on how to deal with the problems of ailing PSUs. Of the 63 sick PSUs referred to it by the government, BRPSE has given recommendations for 52 and advised closure of two — Bharat Opthalmic and Haldia Fertiliser.
Meanwhile, the board is considering proposals to revive three ailing PSUs — Central Inland Waterways Transport Corp (CIWTC), Hindustan Cables and Hindustan Photo Films.
Also, for the first time, the board has suo moto taken up five sick fertiliser companies for recommending revival strategies. The five units include Brahmaputra Fertiliser, Durgapur Fertiliser and Rashtriya Fertiliser.
Where Hindustan Cables is concerned, Sengupta, said that a proposal for divestment in the company could also be considered. The PSU has been ailing on account of outdated technology at a time when the world is moving on to optic-fibre cables.
Rashtriya Ispat Nigam has shown interest in acquiring the sick PSU’s unit at Hyderabad, but there have been no takers for its other two units at Roopnarayanpur in West Bengal and Naini in UP.
Hindustan Photo Films too has become sick on account of not keeping pace with the changing photographic technology to the digital platform.
In the case of CIWTC, the board is looking at plans to set up a joint venture, because if the company is dissolved, the protocol with Bangladesh for transporting goods through the riverine route will also cease, Sengupta said.
“Take for example, CIL or BSNL… even if the government divests 5% in them, they will walk straight into the Fortune 500 list,” Sengupta said. At present, there are 240 central PSUs; 160 of them in profit.
BRPSE, a brainchild of Prime Minister Manmohan Singh, was set up to advise the government on how to deal with the problems of ailing PSUs. Of the 63 sick PSUs referred to it by the government, BRPSE has given recommendations for 52 and advised closure of two — Bharat Opthalmic and Haldia Fertiliser.
Meanwhile, the board is considering proposals to revive three ailing PSUs — Central Inland Waterways Transport Corp (CIWTC), Hindustan Cables and Hindustan Photo Films.
Also, for the first time, the board has suo moto taken up five sick fertiliser companies for recommending revival strategies. The five units include Brahmaputra Fertiliser, Durgapur Fertiliser and Rashtriya Fertiliser.
Where Hindustan Cables is concerned, Sengupta, said that a proposal for divestment in the company could also be considered. The PSU has been ailing on account of outdated technology at a time when the world is moving on to optic-fibre cables.
Rashtriya Ispat Nigam has shown interest in acquiring the sick PSU’s unit at Hyderabad, but there have been no takers for its other two units at Roopnarayanpur in West Bengal and Naini in UP.
Hindustan Photo Films too has become sick on account of not keeping pace with the changing photographic technology to the digital platform.
In the case of CIWTC, the board is looking at plans to set up a joint venture, because if the company is dissolved, the protocol with Bangladesh for transporting goods through the riverine route will also cease, Sengupta said.