Nine CPSEs in fray for navratna status

New Delhi, Dec 12 (UNI) The Government today informed the Rajya Sabha that the proposals for grant of navratna status to nine Central Public Sector Enterprises (CPSEs) have been received through concerned administrative Ministries and Departments.

In a written reply in the Upper House, Minister of Heavy Industries and Public Enterprises Sontosh Mohan Dev said that the CPSEs, which are under the Miniratna Catetory-I (Schedule 'A'), have obtained 'excellent' or 'very good' rating under the Memorandum of Understanding (MoU) system in three of last five years and a composite score of 60 or above in six selected performace parameters are eligible to be considered for the grant of navratna status.

There is a two-stage screening process for conferment of navratna status to the eligible CPSEs. The first stage is the screening by an Inter-Ministerial Committee (IMC), whose recommendations are then considered by the Apex Committee.

The navratna status is granted on the basis of recommendations of the Apex Committee.

The proposals of NALCO and Shipping Corporation of India (SCI) for grant of navratna status are under consideration, he said.

On concession to automotive industry, the minister informed that the Department of Heavy Industry has received from the Society of Indian Automobile Manufacturers (SIAM) and Automotive Component Manufacturers Association (ACMA) pre-Budget memoranda for inclusion of 100 per cent tax deductions on export profits and one-stop clearance for FDI proposals in the auto sector in the Budget 2007-08.

Budget 2007-08 inter-alia includes proposals for tax holiday for investments exceedings Rs 500 crore on the lines of infrastructure project, the minister pointed out.

''Modification of fiscal policy is the prerogative of Parliament and is taken up as a part of budgetary exercise. Such suggestions are examined by the Ministry of Finance at the time of fomulation of Budget for all the sectors including the automotive sector,'' he added.

Regarding sick PSUs, Mr Dev said, out of 89 sick CPSEs as on March 31, 2005, 49 have been referred to the Board for Reconstruction of Public Sector Enterprises (BRPSE).

The minister further informed that till October 2006, the Board had considered 43 cases and given its recommendations in respect of 36 cases. The remaining seven cases have been referred back to the concerned administrative ministry for additional information.

Out of 36 cases recommended for revival by BRPSE, the government has approved revival of 20 sick CPSEs. The revival package generally envisage posting of profits by the enterprise within one to two year(s) of its sanction.

Mr Dev also informed that during the last three years, government sanctioned Rs 2024.50 crore for payment of salaries and wages and outstanding statutory dues to CPSEs.

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