14 sick PSUs return to health

Written by Agencies | New Delhi | Updated: Dec 29 2009, 01:48am hrs
Of the 36 sick PSUs which received approval for fund injection by the government, 14 have been nursed back to health in the last two years.

Change in management strategy, government support and reduction in staff strength through voluntary retirement schemes, helped the PSUs recover to health, BRPSE Chairman Nitish Sengupta said.

The Board for Reconstruction of Public Sector Enterprises (BRPSE) was mandated to devise revival schemes for the state-owned sick PSUs.

Government approved Rs 15,254 crore for the 36 sick PSUs with the 14 revived firms receiving Rs 4,877 crore.

The companies which have turned the corner by posting net profit since 2007-08 include Bharat Pumps and Compressors, Cement Corporation of India, Heavy Engineering Corporation, Andrew Yule, MECON, Bharat Refractories and Central Electronics Ltd.

Sengupta said, the companies which still have red marks on their balance sheets are reducing their losses.