Govt to axe 16 loss-making PSUs

PUNE, Nov 1: Union Minister for Heavy Industries and Public Sector Enterprises Manohar Joshi today declared that the government would close down 16 loss making public sector units after conducting thorough case studies. Of these, around five loss making enterprises belong to Maharashtra.

Joshi was informally speaking to reporters after the inauguration of the Deccan Gymkhana branch of Cosmos Cooperative Bank Ltd here today. The minister said that the government had already set in motion the process of disinvestment of government stake from the public sector enterprises. The government would accord priority to welfare of workers before taking any final decision, he said and added that the government was seeking help from the industry for the purpose. Joshi revealed that the government planned to hold meetings with Rahul Bajaj, president of the Confederation of Indian Industry (CII) to discuss possible strategies. This was Joshi’s first visit to Pune after becoming Union minister.

The minister said that the government was yet decide if the funds from the disinvestment process should be pumped back into the industry or go into the general revenue.Forty-eight public sector enterprises fall under the purview of his ministry. Of these four were making profits while 24 PSUs sway between profit and loss. The remaining 16 were loss-making, he said.

Joshi sought the help of banks in the process of disinvestment of PSUs. He cited lack of proper management. With the recent declaration of the president for creating one crore jobs, he believed that banks would have a major role to play in the development.