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West Bengal to shut down twenty nine loss-making units
Kolkata: The Buddhadev Bhattacherjee government in West Bengal is determined to close at least 29 perpetually loss-making state-owned companies and corporations in the next two years under a second phase of restructuring, the combined annual losses of which amount to Rs665 crore. The restructuring exercise would also decide the fate of over 70,000 employees of these companies.

Industry Minister Nirupam Sen said the state government's approach towards PSU restructuring envisaged closure of structurally non-viable PSUs and unlocking their assets. Spelling out the guidelines for PSU restructuring, he said it also included a joint venture transformation of PSUs "that have potential for viability but require substantial investments for achieving long-term viability.

"The state government's approach towards restructuring is very clear and transparent.

"The guideline includes retention of PSUs which can achieve viability without large investment under government ownership after restructuring their management, business process and financial liabilities and manpower," Sen said.

The Chief Minister had recently announced the second phase of restructuring, which included refashioning of state-owned public sector utilities in the power and transport sectors.

Out of 56 state units in West Bengal, the Public Enterprise Department has decided to restructure 26 with the help of Rs210 crore from British government agency DFID, in the first phase."We have also approached them for support to the second phase of restructuring," the minister said.

The Chief Minister has said "No government — Left, Right or Centre — can bear an annual expenditure of Rs1500 crore to sustain loss-making public sector units."
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Assocham study: Food-processing sector to grow ten per cent by 2010
New Delhi: The food-processing sector is expected to grow at 10 per cent per year by 2010, attracting a minimum investment of Rs2,000 crore, according to a study by the Associated Chamber of Commerce and Industry (Assocham).

The Assocham study, called the "Food Processing Industry - WTO Perspectives", says that markets in developed countries will provide additional export opportunities for agricultural and agro-based processed products for countries such as India due to reduction in import duties, removal of non-tariff barriers and reduction in subsidies to domestic agriculture.

Assocham's projections are based on the assumption that the Integrated Food Law will be effectively put in place and that the National Food Processing policy as well as the Processed Food Development Act, will create a conducive atmosphere for the industry.

The chamber said that an investment of about Rs4,00,000 crore has been made in the sector during the Ninth-Plan period and the Government is expected to put an additional investment of Rs95,000 crore towards the end of Tenth-Plan period.
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