WB govt to privatise 10 sick units

NEW DELHI: Notwithstanding its opposition to privatisation of central PSUs, the CPI(M)-led West Bengal government plans to hive off 10 sick state-level units into private hands by next year, for which it has already received technical bids.

The companies on the block include Shalimar Works, West Bengal Chemical Industries, National Iron & Steel Company, three units of Lily Biscuits Company, Engel India Machines & Tools, Carter Pooler Engineering Company, Neo Pipes & Tubes, Krishna Silicate & Glass, West Bengal Plywood & Allied Products, and Apollo Zipper Company.

"We have already received technical bids for the 10 companies on the block. We are evaluating the bids and would seek financial bids by next month," Nirupam Sen, West Bengal Commerce and Industry Minister, said.

The state government will cede management control in these loss-making companies in favour of strategic partners.

The state government is divesting stake ranging between 51 per cent and 74 per cent in these companies.

Sen said up to 64 companies had expressed their interest in the 10 sick units, out of which 39 have qualified, and they have submitted their technical bids.

"The main bidders in this privatisation exercise include Hindustan Steel Construction, Titagarh group and Kankaria group," Sen said.

The state government has sought the help of DFID to revamp the sick units, while PriceWaterhouseCoopers has been engaged as the financial advisor to the entire privatisation process.