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Govt. committed to promoting healthy PSUs, says Sindhia

By Our Staff Reporter

BANGALORE, JUNE 28. The Minister for Large- and Medium-scale Industries, P.G.R. Sindhia, said here today that the State Government would not privatise public sector industries such as Mysore Electrical Industries Ltd. (MEI) as long as they did not incur losses.

Mr. Sindhia was speaking at a function organised by MEI to celebrate its diamond jubilee year. The Government was committed to protecting, strengthening, and promoting the public sector. It was committed to encouraging private investment in the interest of the State's growth, he said.

Details of the Government's approach to the public sector industries and private participation would be made known in the Common Minimum Programme of the Congress-Janata Dal (Secular) Government to be announced shortly, he said.

The Chairman and Managing Director of MEI, Prahlad B. Mahishi, said the visionary industrialist, the late N.G. Ayyangar, established MEI in 1949 to manufacture power protection equipment. MEI was taken over by the Government in 1979 because of "operational difficulties." From 1979 to 1989, it made only marginal profits. Later, it suffered losses for some years because of "excessive manpower and liabilities inherited from the private management." However, with the financial support of the Government, it implemented a voluntary retirement scheme and reduced its manpower by 50 per cent in 2001 and 2002. It reorganised its production and sales, introduced austerity measures in all departments and relied on its own aggressive marketing strategy. In 2003-2004, MEI registered an all-time high sales of Rs. 4.85 crore and production of Rs. 38.48 crore against the target of Rs. 33 crore. It earned an operational profit of Rs. 2 crore, he added.

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