Action taken by the Government to Locate JV Partners for Sick and Loss Making PSEs

Introduction

Action taken by the Government to locate Joint Venture (JV) partners for sick and loss making PSEs are as under:

Hindustan Cables Limited (HCL)

As per Board of Reconstruction of Public Sector Enterprises’ (BRPSE) recommendations, the Department of Heavy Industry had written to a number of PSEs, including BSNL, MTNL and Railways, having synergy with HCL, for Joint Venture (JV) with HCL as a whole or unit-wise, but no response was received. Thereafter, through an open advertisement, “Expression of Interest” was invited from willing public Sector Enterprises for prospective joint venture partnership with HCL. M/s Railtel, a Public Sector Enterprise under the Ministry of Railways had shown preliminary interest in Naini Unit of HCL but later, after detailed examination, the Ministry of Railways had expressed their inability to enter into JV due to lack of operational synergy. A revised proposal made by the Rashtriya Ispat Nigam Limited (RINL) for JV with the Hyderabad unit of HCL is presently under examination.

HMT Machine Tools Limited

While approving the revival plan on 1.2.2007, the Government approved the proposal for JV formation, in order to sustain the revival. As follow up action a note for the cabinet was prepared and circulated to concerned Ministries/ Departments for comments. The detailed plan is being prepared by the Ministry

HMT Bearings Limited

While approving the Revival Plan of HMT Bearings Ltd. on 3rd November, 2005, the Government also directed to identify a strategic partner for HMT Bearings Ltd. In pursuance of the direction of the Government, approval of the Cabinet was obtained on 23.7.2009 and a resolution seeking Parliamentary approval for majority disinvestment (upto 74%) for identification of a strategic partner was sent for introducing in the Budget Session, 2010, Monsoon Session, 2010 & Winter Session, 2010 of Parliament. But the resolution was not included in the business of either House of Parliament. While action was initiated for introducing the resolution in the Budget Session, 2011 it has been decided to go to the Cabinet for approval of 100% disinvestment in HMT Bearings Ltd. Necessary follow up action is being taken.

Triveni Structurals Ltd. (TSL)

Board of Industrial and Financial Reconstruction (BIFR) vide an order dated 6.6.2003 recommended winding up the company. The issue of winding up or otherwise has been under consideration of Allahabad High Court. The Matter is pending there. In the meantime efforts are being made for a JV with interested PSE. An advertisement to this effect was published in the leading newspapers on 02.02.2009. However, no reply has been received so far. The matter has been taken up with the M/Legal affairs who have not offered any comments in the matter as the matter is sub-judice. A presentation on the Business Plan has been held. TSL has been requested to explore the various options i.e, to continue operation on ‘as is where is basis’, diversification in packaged water for Indian Railways Catering and Tourism Corporation Limited (IRCTC), total diversification into say Paper industry, merger with Bharat Pumps & Compressors Limited (BPCL) etc. A road map for the revival of the company is being chalked out. Recently, the matter has been taken up with Steel Authority of India Limited (SAIL) for taking over of TSL.

Tungbhadra Steel Products Ltd. (TSPL)

TSPL is a sick BIFR referred company and its revival is under process. Regarding JV, an advertisement was placed in the newspapers on 09.07.2009 for inviting EOI from the interested PSEs. No reply has been received. A meeting was held with the representatives of National Thermal Power Corporation (NTPC), National Hydro Power Corporation (NHPC), Bharat Heavy Electricals Limited (BHEL) and Ministry of Power under Chairmanship of Secretary (Heavy Industry) to explore the possibilities of taking over of TSPL. But there was no breakthrough in the matter. BIFR passed orders for calling Expression of Interests (EOI) from private parties. Accordingly, SBI, the Operating Agency has sent the draft advertisement calling EOI from private parties for JV formation. In the meanwhile, Kudremukh Iron Ore Company Limited (KIOCL) had shown interest in takeover of the company. BIFR has been requested to keep the advertisement in abeyance for 3 months. The issue is being sorted out. KIOCL has now shown their inability to proceed. National Mineral Development Corporation Limited (NMDC) has also shown interest. NMDC has been requested to expedite their proposal in the matter. The matter has also been taken up with MIDHANI for JV.

The above information was given by the Minister of State for Heavy Industries and Public Enterprises Shri A. Sai Prathap in reply to a question in the Lok Sabha today.

Source

Press Information Bureau, March 03, 2011