Govt plans divestment in 24 heavy industries

Govt plans divestment in 24 heavy industries

VIJAYAWADA, MAY 13: The Union Minister of State for Heavy Industries Dr Vallabhabhai Kathiria today said the centre was contemplating to go in for disinvestments in 24 heavy industries in the country for their revival.

The Union Minister said in West Bengal the government had decided to go in for out-right sale of three units, but he refused to identify the units.

The Union minister of state for heavy industries said the government would also prefer joint venture of these sick units by holding 26 per cent shares. "But any decision on each sick unit would be taken only after serious study by BIFR". Kathiria said banker merchants would be appointed for each unit to study the loss making units to arrive at a final decision.

Out of 240 public sector organisations in the country, 132 units were running in loss, he said. The Union minister said that he had requested the Chief Minister of Andhra Pradesh N Chandrababu Naidu to place power equipment orders for the proposed power unit with BHEL instead of a firm from China. He said there were differences in rates of BHEL and China company, which was being sorted out. Most of the units have become sick due to failure on the part of the management, over staffing, old machinery and lack of new technology, he added.