Government nurses 14 PSUs back to health
29 Dec 2009
Of the 36 PSUs that had been cleared by the government for support with government funds, 14 have been nursed back to health over the last two years.
According to Board for Reconstruction of Public Sector Enterprises (BRPSE) chairman Nitish Sengupta, change in management strategy, government support and reduction in staff strength through voluntary retirement schemes helped the PSUs regain health.
The central government approved Rs15,254 crore for the 36 ailing PSUs with the 14 revived firms receiving Rs4,877 crore.
The companies that have seen a turnaround since 2007-08 include Bharat Pumps and Compressors, Cement Corporation of India, Heavy Engineering Corporation, Andrew Yule, MECON, Bharat Refractories and Central Electronics Ltd.
According to Sengupta, the companies that still had red marks on their balance sheets are, however, reducing their losses.
Public sector undertakings were set up during the Nehruvian era as 'temples of modern India' however, many of these undertakings turned sick with obsolete technologies, production techniques, outdated marketing strategies.