BANGALORE: Sick public sector units (PSUs) in the city, such as HMT Limited and ITI Ltd, could get a fresh lease of life following the recommendations of the Board o f Reconstruction of Public Sector Enterprises (BRPSE).The city-based PSUs which have long seen mismanagement, business losses and cut down in work forces, can now further their business plans to the BRPSE and hope for a nod by the Union Cabinet Committee.In the case of ITI, the State Bank of India has suggested that Rs 2,380 crore be infused into the company for it to start making profits.“We have sought a little additional cash assistance as nearly `1,500 crore would be required for the implementation of the 39 wage revision,” K L Dhingra, Chairman and Managing Director of ITI said.He added that they were expecting the money to come in by March 2012 and they could start churning out profits late in the year. ITI has consistently reported losses from 2003 and its latest loss was one among the lowest with RS 358 crore.On the other hand, HMT and its subsidiary companies which include machine tools, watches and bearings among others could also benefit from this revival scheme.“We have hired an external consultant and the business plan has been finalised,” HMT CMD SG Sridar said.Stating that they have sought Rs 590 crore assistance for their core group, they have also demanded Rs 85 crore for bearings, Rs 90 crore for machine tools out of which Rs 10 crore would be towards training and Rs 80 crore towards joint ventures.BRPSE Chairman Nitish Sengupta said many companies are making turnarounds from heavy loss to profit with assistance.He shared that the Karnataka Trade Promotion Organisation and the Karnataka Antibiotics and Pharmaceuticals Limited, which was a joint venture of the state and union government, had done visible turnarounds and are now profit making companies.
Comments
0 comment