High powered panel to push PSU revival

New Delhi, Nov 14 | Updated: Nov 15 2005, 06:01am hrs
The government has constituted a committee of secretaries to speed up the revival of public sector units (PSUs), which have been cleared by the Board for Reconstruction of Public Sector Enterprises (BRPSE).

The committee has been constituted at the intervention of the Cabinet Secretariat, which was concerned that of the 20-odd cases cleared by the board only three have got Cabinet approval, sources said.For the revival of these 20 cases, fresh infusion of Rs 418 crore will be required, of which Rs 94 crore will go towards funding a voluntary retirement scheme for the workers of these companies.

While the total infusion of the funds would be on the higher side, the companies will return a large part of the funds to the goverment from the sale of surplus assets.

In case of Hindustan Salts and Bridge and Roof, the Cabinet has already cleared fresh infusion of Rs 7.40 crore and Rs 60 crore.

The revival package for HMT Bearings wll require Rs 7.40 crore of fresh funds from the government while for Bharat Wago this sum would be Rs 25.66 crore of which Rs 10 crore will be for VRS.