HCL loses Rs 288.98 cr in 2006-07

New Delhi, May 15 (UNI) State-owned Hindustan Cable Ltd (HCL) lost Rs 288.98 crore in 2006-07 and could lose another Rs 310 crore in the current financial year, Minister of State of Heavy Industries Kanti Singh informed the Rajya Sabha today.

In a written reply, she said the department has commissioned a fresh techno-economic study on HCL by Indian Institute of Technology (IIT), Kharagpur on the recommendation of Board for reconstruction of public sector enterprises (BRPSEs), adding future of the company will be decided after receipt of recommendation of the Board.

The Minister also disclosed that no production had taken place in HCL in the last three financial years.

Meanwhile, Heavy Industries Minister Santosh Mohan Dev said of the total 225 Central Public Sector Enterprises (CPSEs), 157 were profit-making and 58 suffered losses in 2005-06, adding no information was available in respect of the remaining 10 CPSEs.

While he did not provide details of profits and losses, his junior colleague Kanti Singh, in reply to another question, said PSUs under the department of heavy industry made an agrregrate profit of Rs 1,763.59 crore in 2005-06.

While stating that reasons for losses were manifold and enterprise specific, Mr Santosh Mohan Dev said some common problems faced by sick and loss-making CPSEs include obsolete plant and machinery, outdated technology, resource crunch, low capacity utilisation, interest burden, stiff competition, weak marketing and surplus manpower.

Of the cases referred to the Board, he said BRPSEs had recommended revival of 41 CPSEs and two for closure till March-end, 2007.

On the issue of granting autonomy to state-owned companies, the Minister said the government, in August-2005, had already delegated more powers to the boards of Navratna, Miniratna and other profit-making CPSEs in the area of capital expenditure, investment in joint ventures and subsidiaries, human resources management, merger and acquisition, adding enhanced powers would enable boards of these companies to take quick decisions.

UNI