As many as 11 Central Public Sector Enterprises (CPSEs) which had almost sunk into heavy financial losses, have shown a turnaround story by posting profits for three consecutive years to fiscal 2008-09.
The Board of Reconstruction of Public Sector Enterprises (BRPSEs), which played a key role in nursing these units back to health has described them as “born again” CPSEs, which include Ranchi-based Heavy Engineering Corporation (HEC), which was set up at the instance of the country’s first Prime Minister Jawaharlal Nehru.
Other CPSEs, which displayed a dramatic turnaround are: BBJ Construction Company, Bharat Pumps and Compressors, Braithwaite and Company, Bridge and Roof Co, Cement Corporation of India, Central Electronics, Hindustan Insecticides, Mecon, Mineral Exploration Corporation and State Farms Corporation of India.
“While the causes for sickness may vary from one enterprise to another, the magic wand for recovery is conformity to the discipline of the balance sheet...,” BRPSE Chairman Nitish Sengupa said in a booklet listing the turnaround stories of 11 CPSEs.
HEC, which was incorporated in 1958 and has the country’s largest integrated engineering complex had accumulated losses of Rs 2,106 crore in March 2005, and its net worth was negative to the extent of Rs 1,623 crore.
The company’s net worth has become positive (at Rs 202 crore) on March 2010, and has posted profits since 2006-07.
The story is similar for other 10 public sector companies, which were among 40 CPSEs referred to BRPSE for revival. While 20 of these companies have earned profits in 2008-09, the 11 of them did so for three years in a row.
Several of them have history behind them. For instance, Braithwaite Burn and Jessop Construction Company (BBJ) was incorporated as a private company in 1935, initially to facilitate erection of the Howrah Bridge over the River Hooghly in Kolkata. It became a PSU in 1987.