Government plans to sell land bank of sick PSUs

NEW DELHI: With the government's plan of selling stake in sick public enterprises going awry, it is now considering unlocking the land bank of these companies to generate revenue.

The ministry of heavy industries has circulated a note to set up a Public Sector Land Development Authority ( PSLDA), which will identify excess land with sick units that can be sold for commercial use.

According to official estimates, the close to 60 sick PSUs in the country together hold about 20,000 hectare of vacant land."The idea is that PSLDA will identify the excess land and bid them to be developed commercially," a senior government official, who did not want to be named, said.

The proceeds from sale of such land, over 100 acre of which belongs to HMT, NTC, Hindustan Photofilms and ITI and is in the metros, will either go to the government or be used to resurrect state-owned firms.

"The revenue generated could be ploughed back for revival of sick firms," the official said, adding that PSLDA would be on the lines of the Rail Land Development Authority, which develops vacant land in its possession for commercial use to generate revenue through non-tariff measures.

The heavy industries ministry is hopeful that the move will reap benefits, after the government earlier this month eased curbs on transfer of land from ministries to statutory authorities or public sector under-takings. The government plans to infuse around Rs 4,575 crore in six loss-making enterprises.

In 2008, the second pay revision committee for state-run enterprises had suggested that the government should exit such companies.