UPA Govt committed to revival of PSUs: PM

Burnpur (West Bengal), Dec 24: Prime Minister Manmohan Singh today asserted that the UPA Government at the Centre was committed to the revival of the loss making Public Sector Units (PSUs) through modernisation and expansion.

''The government is committed to modernisation and expansion of our PSUs and their long term growth and viability... I am confident that many more PSUs will revive as a result of our efforts,'' he said while laying the foundation for the 2.5 million tonne expansion programme of the Indian Iron and Steel Company (IISCO) here.

Dr Singh said the expansion programme for IISCO, which had been merged with the Steel Authority of India Ltd (SAIL) for revival after a prolonged period of sickness, was an example of the Government's intention and efforts.

''We have an effective system for examining the viability of each and every loss making PSUs with a view to identifying its long term prospect for rehabilitation and growth,'' Dr Singh said.

Describing the expansion of IISCO as a dream come true, he said, ''Let this be the dawn of a new era of industrialisation of Burnpur and West Bengal.'' West Bengal Chief Minister Buddhadeb Bhattacharjee, Steel Minister Ram Vilas Paswan and Parliamentary Affairs Minister Priyaranjan Dasmunshi were among others present at the function.

The expansion of IISCO steel plant at an investment of Rs 9,600 crore, was a part of SAIL's growth plan to produce 23 million tonnes of hot metal by 2010.

Giving a call to move ''fast, quickly and efficiently'' to catch up with the East Asian neighbours in the industrialistation, Dr Singh emphasized on the need for modernization and strengthening the manufacturing sector for overall growth. ''We need to build a strong resurgent India. With modernization the demand for steel will grow and we need steel for the progress of our economy,'' he stressed.

It was the policy of the UPA Government, as enshrined in the Common Minimum Programme, to give thrust on the manufacturing sector, especially the steel industry, for generation of more employment, the Prime Minister said.

Observing that with a very low per capita consumption in steel, India had a long way to go to catch up with countries like China, Dr. Singh called for an introspection into what led steel tycoons Laxmi Naryan Mittal and Ratan Tata to expand capacity through takeover of foreign companies when there were enough opportunities for growth in the domestic market.

''Why does Mittal or Ratan Tata has to buy foreign companies to establish global presence and expand steel capacity when our per capita steel consumption is so low and when there is so much opportunity here we need to introspect deeply,'' he asked.

A time had come to ponder whether the country's procedures, bureaucracy and red tapism were prompting Indian steel majors to 'choose foreign shores for growth and expansion rather than their home turf', he said.

Calling for production of more high quality steel in the country he said effort must be made to ensure that Indian steel becomes the benchmark in the international market.

UNI