News: No "blind disinvestment strategy" in India

(PTI 24/12/2006) Burnpur (WB) - Emphasising the Central government's commitment to modernising and expanding PSUs, Prime Minister Manmohan Singh on Sunday said his government has no "blind disinvestment strategy" for state-run units.

Laying the foundation stone for a Rs 9,000-crore revival plan for the Indian Iron and Steel Company (IISCO) here, Singh said his government has already provided large amounts for the revival of many PSUs in recent times.

"There is no blind disinvestment strategy without examining the viability of the unit," he said. There is an effective system of examining the viability of each loss-making PSU to identify long-term proposals for rehabilitation and growth, he said.

Citing examples, he said, sick PSUs like Bridge and Roof, Heavy Engineering Corporation, Braithwate and Company and Cement Corporation of India have already been provided large amounts for their revival.

He said units in West Bengal have been a major beneficiary of the Centre's revival strategy that has put these units on the revival path. "IISCO's revival plan is an example where we are exploiting its synergies with SAIL and investing its future growth," Singh said.