The Hindu : Munda flays HEC, Bokaro steel plant management

Online edition of India's National Newspaper
Thursday, Jun 26, 2003

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Other States - Jharkand

Munda flays HEC, Bokaro steel plant management

RANCHI JUNE 25. Jharkhand Chief Minister, Arjun Munda, has criticised the management of Heavy Engineering Corporation and Bokaro Steel Plant for their ``initiatives'' in selling state government land leased to them.

``The two PSUs should understand that the state government land is not for serving their real estate interests. No one can sell government land as it had been leased for setting up their factories,'' he told reporters yesterday.

Regarding the revival of the sick HEC, the Chief Minister said the onus of the revival lies on the company management.

``It's the responsibility of the HEC management to run the sector profitably. I am not in favour of giving grants every year for its survival. Productive units should not depend on such things. Its suicidal,'' Munda said.

Under section 15(1) of the Sick Industrial Companies (Special Provisions) Act, 1985, the HEC was declared sick and IDBI was appointed as its monitoring agency.

Disclosing that he had asked the HEC management to provide him a list of year-wise profit ever since the PSU was set up here in 1963, he said the management should try and expand through production, marketing and profit.

Asked about the BIFR's May 7, 2003 direction to IDBI (monitoring agency) to advertise for sale of HEC, he said the state government at best could request the Centre to give another chance in the interest of the workers. ``But ultimately we can not repay their loans''.

However, the company is still hopeful of revival with sources in the PSU saying a new revival plan had been submitted to the Centre. PTI

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Munda flays HEC, Bokaro steel plant management