Steps taken to revive PSUs

Staff Reporter

KOLLAM: Industries Minister Elamaram Karim has said that as part of the Government's policy to protect and promote public sector undertakings, major decisions have been taken to revive even the sick PSUs by settling the liabilities of these companies.

Talking to mediapersons here on Wednesday, he said the Industries Department had constituted a working group with select nationalised and private sector banks.

The aim was to work out one-time settlement of the liabilities. The cases of 12 PSUs were agreed to be taken up for this settlement. However, after settlement, the Government would find it difficult to financially support these PSUs. But as per the Reserve Bank of India guidelines, a bank cannot advance another loan to a company with which a one-time settlement had been worked out.

At the same time, these companies would need bank support in the form of loans. "A formula in this connection is being worked out so that banks advance loans to the PSUs without violating the RBI guidelines," the Minister said. He said that an agreement between the KSEB and Steel Industries Limited Kerala (SILK) was reached for the construction of five mini-hydel power generation stations in the State.

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