Sale of 'chronically loss making' PSUs after workers paid dues

New Delhi, Aug 17: The government today assured the Lok Sabha that ''chronically loss making'' Central Public Sector Enterprises (CPSEs) would be sold off or closed down only after all the workers are paid their dues and compensation.

The government was taking various steps for the revival of sick public sector companies as per the National Common Minimum Programme, but it will not be possible in the case of CPSEs that are incurring huge losses, Heavy Industries and Public Enterprises Minister Santosh Mohan Dev said.

According to the Public Enterprises Survey, 41 CPSEs have been incurring losses continuously in the past five years as on March 31, 2005.

''While every effort will be made to modernize and restructure sick public sector companies and revive sick industries, chronically loss making companies will either be sold-off or closed after all the workers have got their legitimate dues and compensation,'' the Minister said during Question Hour.

The 41 loss-making CPSEs include the Konkan Railway Corporation, Bharat Coking Coal Ltd, Eastern Coalfields Ltd, HMT Watches Ltd, Nagaland Pulp and Paper Company Ltd and Hindustan Antibiotics Ltd.

A plan for revival of the Nagaland Pulp and Paper Company will go to the Cabinet Committee on Economic Affairs, said Mr Mohan Dev.

According to Mr Mohan Dev, the Board for Reconstruction of Public Sector Enterprises (BRPSE) created in December 2004 has recommended closure of two CPSEs and revival of 30 others till July. The companies recommended for closure are Bharat Ophthalmic Glass Ltd and Cement Corporation of India Ltd. In the case of Cement Corporation of India Ltd, BRPSE has recommended closure of its non-operating units and revival of operating units, the Minister said.

Altogether 47 companies have been so far referred to the Board.

Mr Gurudas Dasgupta, the leader of CPI in the Lower House, blamed the BRPSE for not taking decisions on time leading to mounting costs of revival.

''The workers of many of these companies are not getting their salaries,'' Mr Dasgupta said.

UNI