Resurrecting Sick PSU’s

16. Apr, 2011 2 Comments

The Ministry of Heavy Industries in looking to revive some of its sick PSU’s. Adverse working conditions and lack of motivation are seen as some of reasons for their poor performance. The 54 sick PSUs posted combined losses of 14,424 crore in 2008-09, a 40% increase over the previous year. West Bengal-based Eastern Coalfields recorded 2,109 crore losses, while Jharkhand-based Bharat Coking Coal posted 1,380 crore losses.

The Ministry of Heavy Industries, which oversees the functioning of 213 central public sector units, will examine the current pay policy in sick enterprises before chalking out a fresh policy. It is planned to extend the tenure of the CEO’s of 54 sick companies, give them a good pay hike, post-retirement benefits, additional gratuity and other sops. A turn around time would be fixed and performance of the Company would be reviewed.

Recently, the ministry of heavy industries had moved a cabinet proposal for full stake sale in Scooters India and HMT Bearings.

It would be a great return on the investment if these companies were to turn around and not be auctioned in the market. Would save the jobs, of the least. But will the Government succeed in playing God is to be seen.

Courtesy: ET

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2 Responses to “Resurrecting Sick PSU’s”

  1. soumik 13. Jul, 2011 at 6:21 pm

    sir this news are utmost importnant to students like us..plz provide wid more such useful infos…plz dun stop at doing this awesum work..hatts off to u sir..

  2. praveen13ad 13. Jul, 2011 at 9:34 pm

    Thanks Soumik