Question : JV IN REVIVAL OF PSUS

(a) whether any joint venture partner has been located to revive the Public Sector Undertakings (PSUs) which are under the aegis of the BIFR;

(b) by when the Government will convert the PSUs into a Joint Venture company without affecting the interests of the workers;

(c) whether the Government is aware that delay in taking decisions to revive a company will further make it sick; and

(d) if so, the urgent steps the Government is taking to expedite finding a joint venture to make such PSUs viable?

THE MINISTER OF HEAVY INDUSTRIES & PUBLIC ENTERPRISES(SHRI SONTOSH MOHAN DEV)

(a) : Based on the recommendations of the Board for Reconstruction of Public Sector Enterprises (BRPSE) NEPA Ltd., HMT Bearings Ltd., Richardson & Cruddas Ltd.,Tungabhadra Steel Products Ltd., British India Corporation Ltd., HMT Machine Tools Ltd., and Tyre Corporation of India Ltd. have been identified by the Government for revival through joint ventures.

(b) : As per National Common Minimum Programme, while every effort will be made to modernize and restructure sick public sector companies and revive sick industry,chronically loss-making companies will either be sold-off,or closed after all workers have got their legitimate dues and compensation.

(c) & (d) : In order to expedite the revival of sick CPSEs, the Government have set up BRPSE in December, 2004 to advise the Government inter alia on the measures to be taken for revival/restructuring of sick CPSEs. The Board may consider the revival of loss making CPSEs, if it is of the opinion that revival/restructuring is necessary for checking incipient sickness. Various Ministries/Departments have already referred 58 proposals of sick CPSEs to BRPSE for consideration, BRPSE has given its recommendations on 51 cases for revival (including closure of 2 CPSEs).Out of these 28 proposals have been approved by the Government for revival at a total cost of Rs. 8409.31 crore (cash assistance of Rs.1962.51 crore and non-cash assistance of Rs. 6446.80 crore).