REVIVAL OF SICK PUBLIC SECTOR UNDERTAKINGS
Government policy is to revive potentially viable
public sector undertakings. Industrial Undertakings whose net
worth has eroded are referred to the Board for Industrial and
Financial Reconstruction (BIFR) as per Sick Industrial Companies
Act for formulation of appropriate revival packages.
The reasons for sickness are enterprise specific.
However, some of the common reasons for sickness include inherited
sickness in case of units taken over from the private sector,
obsolete plant and machinery, outdated technology, low capacity
utilisation, excess manpower, resource crunch, lack of credit
worthiness, heavy interest burden, weak marketing strategies as
well as managerial problems etc.
As on 31.12.2001, 66 sick Central Public Sector
Undertakings (CPSUs) were registered with the BIFR on which 3
PSUs namely Biecco Lawrie Ltd., NERMAC and Scooters India Ltd.
have been declared no longer sick. Revival schemes have been also
sanctioned for 10 sick CPSUs.
The Board of Directors of a company are fully
accountable for the affairs of the company. There are various
methods of fixing accountability, which include Memorandum of
Understanding, periodical review of performance by the administrative
and other concerned Ministries, performance appraisal through
annual confidential reports, audit by statutory auditors/CAG etc.
This information was given in the Lok Sabha today
by Dr. Vallabhbhai Kathiria, Minister of State for Heavy Industries
and Public Enterprises in a written reply to a question by Shri
Y.V.Rao and Shri Ravindra Kumar Pandey.
