Date:20/02/2007 URL: http://www.thehindubusinessline.com/2007/02/20/stories/2007022001671000.htm

Back Public sector units revamp board may come under PMO

Ambarish Mukherjee

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New Delhi Feb. 19 The Board for Reconstruction of Public Sector Enterprises (BRPSE) set up by the Government in 2004 under the Ministry of Heavy Industries and Public Enterprises may be brought directly under the Prime Minister's Office (PMO).

Though there has not been any official move to this effect, the view that has been floated by certain sections within the Government is that the board should be allowed to run independently and putting it directly under the PMO would also lift its status, sources said. They added that the BRPSE Chairman already enjoys the status of Minister of State.

Revival packages

Since inception, 48 sick public sector enterprises have been referred to the BRPSE for revival. Of these, in 19 cases the revival packages have been approved, which include companies such as Hindustan Salts Ltd, Bridge & Roof Co (India) Ltd, BBJ Construction Company Ltd, Tyre Corporation of India Ltd, British India Corporation Ltd, National Textiles Corporation and its nine subsidiaries, Madras Fertilizers, HMT Bearings, Praga Tools Ltd, Braithwaite & Company Ltd, NEPA Ltd, Richardson & Cruddas Ltd, Central Inland Water Transport Corporation.

Only in the case of Bharat Ophthalmic Glass Ltd, the board has approved closure of the company. No final decision has been taken with respect to the other companies till date.

Government sources said that the idea of placing BRPSE directly under the PMO would also increase the operational flexibility of the board. Currently, the board has 10 members, including the chairman, three non-official members, three official members and three permanent invitees.