Government should set time-frame for revival of sick units: Panel

NEW DELHI: A Parliamentary panel today asked the government to set time-frame for revival of sick Central Public Sector Enterprises (CPSEs).

"There is an inordinate delay in getting approval from the government which is affecting revival proposals after receipts of recommendations for revival from the Board for Reconstruction of Public Sector Enterprises (BRPSE)," said the Parliamentary Standing Committee on Industry.

The panel said in its report laid in Parliament that it is of the firm opinion that this state of affairs defeats the very purpose of revival.

The 31-member committee, headed by Rajya Sabha MP Tiruchi Siva, said delayed action by the government exceeding period up to 6 years can render the financial packages redundant. The highly dynamic market environment in which the CPSEs operate also makes delayed revival attempts meaningless.

Therefore, the panel recommended that the Department of Public Enterprises (DPE) should take initiative to establish an appropriate time-line for the government to take action on the revival recommendations of a sick CPSE, it said.

Of the 260 CPSEs, about 66 were sick units including Hindustan Cables, HMT Watches and ITI Ltd, as on March 31, 2012.

In January this year, the Cabinet had approved a Rs 200- crore revival package for ailing Scooters India Ltd (SIL).

The BRPSE, which was set up in 2004, is an advisory body to the government on revival and restructuring of sick PSUs.