The decision was announced at a meeting convened by Punjab principal secretary (industries) Ramesh Inder Singh, managing director of PSIDC SS Brar, managing director of Punwire Gurpal Singh, executive director Ved Parkash and representatives of union who are agitating for release of their salaries. The PSIDC has offered a Rs 20 crore package so that Punwire can commence production. The industry secretary, however, made it clear that PSIDC has imposed certain conditions like an escrow account so that profits are routed through PSIDC, bankers and other creditors and also Punwire, gets some share.

Punwire managing director Gurpal Singh, told The Financial Express that the board of directors has taken a decision to go in for "disinvestment of subsidiaries to the extent of 49 per cent". The company has equity of Rs 160 crore in its seven subsidiaries.