In talks with Defence Ministry to hand over Tungabhadra plant: Anant Geete

PANAJI: Union Heavy Industry Minister Anant Geete today said his ministry is in talks with the Ministry of Defence to hand over the latter the charge of ailing Tungabhadra Steel Products Ltd in Karnataka.

"The (Heavy Industry) ministry is in talks with the Defence ministry for the revival of Tungabhadra Steel Products Ltd. The ministry wants the Defence Ministry to take it over. If that happens, the ailing plant would be revived," he said.

The plant is one among several industries which are ailing and posing crore of rupees liability on the central government, he added.

The ministry has a total of 32 public sector undertakings under its belt, of which 11 including Bharat Heavy electrical Ltd (BHEL), are running into losses since 2007, Geete said.

"We have decided to close some of them, because since 2007 there is no production in these units and we have already spent about Rs 4,000 crore only on salary and wages of the employees. How long will we continue to spend on salaries in these nonproductive units," the minister said.

"We have already shut five PSU and offered voluntary retirement scheme to employees with each worker getting between Rs 30-35 lakh. All workers were happy and the decision was in fact taken taking them into consideration. Of the balance six, two are taken for revival, which includes Scooter India Private Ltd," he added.

He also said that his ministry is working on a special policy for development of heavy engineering sector.

"We have already drafted a policy for capital goods sector and it is approved by the Cabinet. Soon, we are going to implement it," Geete said.

The Tungabhadra Steel plant at Hosapete town in Bellary district was established in 1960 with equal equity participation of then government of Mysore and Andhra Pradesh.

It was set up with an idea to undertake manufacturing of gates and hoists required for spillways, sluices and canal gates of Tungabhadra dam in Karnataka.