Centre to close down five PSUs

By Our Special Correspondent

BANGALORE, OCT. 10. The Centre has decided to close down five public sector industries under the control of the Heavy Industries and Public Enterprises as they could not be revived, the Minister of State concerned, Dr. Vallabhbhai Kathiria, said. He was speaking to presspersons here on Wednesday after inaugurating a national seminar on `Corporate Restructuring' organised by his Ministry and the United Nations Development Programme.

The five PSUs to be closed down - all in West Bengal - are Bharat Process and Mechanical Engineering Company, Weighbird India, Rehabilitation Industries Corporation, Tanner and Footwear Corporation and National Bicycle Corporation of India. A decision will be taken with regard to the Minerals and Allied Minerals Corporation after the Union Cabinet considers its case.

Dr. Kathiria said the fortunes of Hindustan Machine Tools Ltd had brightened after the rehabilitation package was taken up. Except its tractor unit in Punjab, the other units of the Bangalore- based public sector industry were ``doing well.'' He said the PSUs were being freed from the burden of the innumerable guidelines issued over the years. As many as 696 guidelines had been scrapped based on the recommendations of the Vittal Committee and the units had been given higher autonomy and functional freedom. Another committee, headed by Mr. T.K.A. Nair, had submitted its report on further freeing of the PSUs from controls to the Union Government.

Mr. Ravindra Gupta, Secretary, Union Ministry of Heavy Industries and Public Enterprises, noted that the Government was trying to distance itself from the PSUs. He said it was the Government which was responsible for their bad performance.

Dr. Pradeep Sharma, Division Chief, UNDP, New Delhi, presented an overview of the situation facing the Central PSUs.

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