RECONSTRUCTION OF SICK CPSUs

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RAJYA SABHA

Reconstruction/revival of sick Central Public Sector Undertakings (CPSUs) is a continuous process. Enterprise specific measures are taken in this regard by the concerned administrative Ministries/Departments and the Management in consultation with various stakeholders including workers etc. Some of these measures include referring of sick industrial CPSUs to Board for Industrial and Financial Reconstruction (BIFR), financial and business restructuring including hiving off/closure of unviable units, infusion of fresh funds, mobilisation of additional resources through government guarantee and sale of surplus lands and other assets, rationalisation of manpower through VRS, improved marketing strategies, cost control measures etc.

As per available information, recently BIFR has sanctioned rehabilitation schemes in respect of eight subsidiaries of NTC Limited to revive viable units and close the unviable ones after giving VRS to affected employees. The likely cost of revival package of NTC approved by the Government/BIFR is Rs.3900 crore (approx.). Of this, Rs.625 crore is provided as wage support by Government for two year period and rest through sale of surplus lands and other assets.

This information was given in the Rajya Sabha today by Shri Balasaheb Vikhe Patil, Minister of Heavy Industries and Public Enterprises in a written reply to a question by Shri Rama Muni Reddy Sirigireddy.