Date:04/07/2009 URL: http://www.thehindu.com/2009/07/04/stories/2009070456251500.htm

Business

Burn Standard, Braithwaite in Railways fold

Special Correspondent

Employees see a fulfilment of their long-pending demand

KOLKATA: The 1,500 employees of Burn Standard see a fulfilment of their long-pending demand in the announcement made by Railway Minister Mamata Banerjee of her ministry’s plans to takeover the company along with Braithwaite. These two companies are held by Bharat Bhari Udyog Nigam Ltd (BBUNL) which is administered by the Department of Heavy Industries.

Anutosh Banerjee, President of All India Federation of Burn Standard Officers’ Association, told The Hindu that this demand was made to Ms. Banerjee during her stint as Railway Minister in 1999.

The BIFR-listed company had since then improved its financials and had been making cash profits for the last four years, Mr. Banerjee said.

A board-level source at Braithwaite told The Hindu that although it was a profit-making company, its takeover would increase synergies.

“This is an inter-ministerial decision, which will improve the efficiency of the company”. Intuc leader Subrata Mukherjee, however, felt that even Jessop, an esrtwhile BBUNL company where the government divested its stake in favour of Pawan Ruia, should be taken over by the government since Mr. Ruia was not running it well.

Ramesh Maheswari, Texmaco President, felt that government-takeover would not solve the woes of these companies which need not only infusion of capital but also a strong management and appropriate technology.