PSUs to be nursed to health before divestment

The government is working on a plan to nurse sick public sector units back to health before any disinvestment takes place in these companies, chairman of the PSUs revamp board Nitish Sengupta has said.

"Yes, we want to bring the loss-making companies to record operating profits before they can be disinvested," Board for Reconstruction of Public Sector Enterprises (BRPSE) Chairman Nitish Sengupta told PTI.

Although, the government would not disinvest its equity in PSUs below 51 per cent, it could go in for strategic partners for those firms which are chronically sick and cannot be revived, BRPSE chief said.

The board has convened a meeting on June 26 to consider few cases, including that of ITI Ltd, Bangalore and Burn Standard Company Ltd, Kolkata.

The board is also keen on studying the case of Air India, which is in the process of integration with Indian under the entity - National Aviation Company of India Ltd (NACIL).

"We have requested the Ministry of Civil Aviation that we would like to study Air India, they have not yet replied," he said. Nitish Sengupta said the Civil Aviation Ministry will be reminded on the BRPSE proposal to study NACIL for reconstruction.