Shutters coming down on your head!Govt Finally Gets Moving to Shutter Terminally Ill PSUs!
Palash Biswas
Shutters coming down on your head!Govt Finally Gets Moving to Shutter Terminally Ill PSUs!Not only sell off,not only privatisation,not only automation and retrenchment,not only wiping out all sorts of labour laws,not only IPO,now it is complete termination of ill PSUs as the private parties term the most profitable PSUs.
It may not be the next immediately and you may enjoy your seat in the air conditioned ivory towers until the inferno works as guillotine to subject you to the selected ethnic cleansing as the majority agrarian and business communities are predestined under the post modern global zionist Manusmiriti satanic order banking on brutal apartheid to kill all black untouchable humanscapes around the globe.
Here you are! You may not see beyond your blinded identity without any vision, without any senses survived so far that you have been thrown into an infinite killing fields,hunting ground or gas chamber managed by neo nazi ruling hegemny.
Pardon me!We have been visiting and demonstrating the impending,imminent danger ahead for a time span no less than ten years sector wise.We had been quoting the reports of disinvestment council and disinvestment commissions.We had been analysing policy making overtaken by private parties and extra constitutional elements ,so called experts fed on desi videsi black money and so on.Personally,I had been talking on Budgets for no less than ten years.
But PSU employees,though more enlightened than us,more informed than us,more awakened than us ,could not defend their job and working conditions against overwhelming reforms not to mention the agrarian and business communities countrywide deprived of quality education,knowledge and information.
Now,the shutters should come down and sky overhead to fall someday or another day,you are stranded on ground zero amidst complete destruction without any move for resistance whatsoever.
Our prime minister, having an expertise of apartheid and hate campaign,the complete package of high voltage religious nationalism always resultant in monopolistic aggression as well as genocide based on PPP Gujarat model,has warned the nation right from the venue of the G 2o summit that no politics would be tolerated as far as reforms are concerned.
As he seeks to accelerate his economic reform drive, Prime Minister Narendra Modi on Saturday said reform process is bound to face resistance and wanted it to be insulated from political pressures.
Making a strong pitch for economic reforms, Mold told fellow G20 leaders at a retreat here that reforms should lead to simplification of processes and that methods of governance must be reformed.
Look!Prime Minister Narendra Modi on Monday said the differences between Overseas Citizenship of India (OCI) and Persons of Indian Origin (PIO) schemes would be ended by January 2015.
However,our prime minister has not to answer neither to the Parliament of India nor the people of India,in no way,as the democratic set up has broke down, what if he has taken oath to protect the constitution of India, which he wants to translate into Manusmiriti rule combined with zionism
Please enlighten me,I am not sure whether American constitution, US Congress,the states and the people of United states would allow their omnipotent President elected twice to discuss internal affairs of the nation outside the nation!
Our prime minister may say anything,anywhere,anytime as he is most habitual to eat his words so often and Indian constitution is reduced to a holy cow as our holy books are.The ethics,the morals have not to be practiced at all and the ruling hegemony is mandated by us to kill the constitution at will.
We have selected all kinds of war criminals as the most powerful representatives of democracy with billions on their belt who have reduced parliamentary democracy.
We are habitual to elevate the most corrupt personality rooted in every scam so far to the supreme position. Since the most corrupt have the constitutional immunity that they may not be tried,they may not be questioned and,moreover,the cases which should not be opened up without questioning them,may not be investigated no way.Our billionaire millionaire representatives dare not to impeach the supreme personality.
It is the democracy we boast of and which is reduced to complete autocracy corrupted with absolute power with flavours of religious nationalism.
Just see,yet another scam ,the IPL scandals ends thus,the Mudgal Committee, which has conducted a probe into spot-fixing and betting charges in IPL 2013, has exonerated world cricket chief Narayanaswami Srinivasan, clearing the way for his comeback as head of the sport in India.
We have to be fed on the fatal recipe in absence of rule of law,in absence of human and civic rights. Every law of the land is subjected to draconian corporate lobbying resultant in free flow of black money,foreign capital and foreign interest.
The eminent corporate advocate Arun Jaitely is the finance minister who has been relieved from defence ministry completing the task of free flow of FDI in defence and has been loaded with information and broadcasting to use the much needed anesthesia to complete the operation meant ethnic cleansing full of the venom of apartheid with surgical precision.
Here you are!
Ahead of winter session of Parliament, Union Finance Minister Arun Jaitely on Wednesday hinted the government plans to bring series of reforms in labour, land acquisition and insurance laws and also announced the possible move to privatise of some loss-making public sector companies.
Jaitley, who kicked off the two-day India Economic Summit in New Delhi recently, organised by Geneva-based World Economic Forum, said, "There is a lot that has to be done ... I am quite satisfied with the beginning we have made but it's a long journey."
Cautioning against rushing into major reforms that could trigger a political backlash and derail the government's agenda, the minister said, "Reform is the art of the possible," while promising not to take decisions that would send negative signals to investors.
Maintaining that the country needed to doggedly pursue the reforms agenda despite challenges, the minister said there could be a hundred things which could be done but the focus would be on what can be done immediately as part of the reforms process.
The incomplete task initiated by the disinvestment ministry headed by Arun Shourie,has to be completed now as economic times reports:
HMT Watches and Tungbhadra Steel among 6 companies to be closed in first phase
Days after Finance Minister Arun Jaitley indicated that the government was willing to consider the privatisation of sick state-run firms, the Centre has begun the process of shutting some of them.
A senior government official confirmed that a Cabinet note proposing the closure of six companies under the department of heavy industry has been circulated.
The list includes Hindustan Photo Films, HMT Bearings, HMT Chinar Watches, Tungbha dra Steel, Hindustan Cable and the iconic HMT Watches.
In the second round, 15 more loss-making firms will be under consideration, including British India Corporation, IDPL and their subsidiaries.
The incomplete task initiated by the disinvestment ministry headed by Arun Shourie,has to be completed now as economic times reports:
Government data shows there are 61 sick central public sector enterprises (CPSEs) that had 1.53 lakh employees as on March 31, 2013. The government has been paying the salaries of these employees largely through the budget. Interestingly, HMT watches have been in high demand following indications the company could be shut.
Earlier this month, Jaitley had said that the government would look at privatising some of the loss-making public sector undertakings (PSUs) as taxpayers cannot keep picking up the tab.
Now read this in Business- Standard:
Finance Minister Arun Jaitley's Wednesday statement that the government is open to privatising sick public-sector undertakings seems to offer hope on 79 state-run companies that had an accumulated loss of Rs 55,656 crore in 2012-13, according to the latest available numbers.
By the government's definition, a central public-sector enterprise (CPSE) is considered sick if its accumulated loss in a financial year is equal to or more than 50 per cent of its average net worth in the four immediately preceding years, and/or if it can be termed sick by the meaning in the Sick Industrial Companies (Special Provisions) Act, 1985.
The public-sector enterprises survey for 2012-13 shows that the number of sick CPSEs, 90 in 2004-05, came down to 66 in March 2012 but again climbed to 79 in March 2013. The result for the 2013-14 survey is not yet out. (PRIVATE MASTERS AHEAD?)
The survey also shows that the number of operating CPSEs registered with the Board for Industrial & Financial Reconstruction (BIFR) was stable in 2012-13, at 44. The good part was that their accumulated loss fell from Rs 65,642 crore the previous year. The number of sick CPSEs fell, albeit marginally, during this period — from 64 to 63. According to the survey for 2011-12, the 64 sick CPSEs as of that year had a combined employee strength of 226,188.
The prominent unlisted companies that figure on the list of sick companies are Air India, Hindustan Cables, Hindustan Fertilizer Corporation and Hindustan Photo Films.
For 2012-13, Air India had a negative net worth of Rs 15,642 crore, thanks to losses of over Rs 33,000 crore in the preceding six years. High cost and rising competition were among other reasons for the company's weak finances.
The other three also had a significantly high negative net worth — of Rs 5,312 crore, Rs 8,550 crore and Rs 10,897 crore, respectively — at the end of 2012-13. These companies also reported losses for the financial year. Likewise, HMT Watches (Rs 2,012 crore), Indian Drugs & Pharmaceuticals (Rs 7,315 crore) and STCL (Rs 2,097 crore) witnessed high negative net worth at the end of 2012-13, besides losses for the year ended March 2013.
Among the listed PSUs that are sick are Hindustan Flourocarbons, Hindustan Organic Chemicals, HMT, and ITI (excluding revaluation reserves), which had combined accumulated losses of Rs 6,503 crore at the end of March 2014, according to Capitaline data. Many of these companies saw their revenues declining in the past three to five years, while the losses of some increased during this period.
Cash flow from operations was also negative for these companies. And their debt-equity ratios were significantly high over the past few years. While debt increased for most, the shareholders' funds declined because of losses.
The reasons are no secret. While some experts point to bureaucratic factors, many of these companies were not able to cope with the changing external environment. But, the 2012-13 survey shows the reasons are historical (takeover from private players) in some cases, while others became sick over the years on account of inadequate job orders, high manpower cost, lack of finance, technological obsolescence, high input costs and competition from cheap imports. Some were hit by the burden of serving macroeconomic objectives, but the common problem for most were poor debt-equity structure, slow decision-making and weak marketing strategies.
HMT (formerly known as Hindustan Machine Tools), for example, has over the past 61 years diversified into making watches, tractors, etc. For more than 10 years now, the company has been reporting consolidated losses after tax (adjusted for one-off items). Its reported bottom line was positive (at Rs 17 crore) only in 2005-06. And, since 2006-07, its accumulated losses have been rising — from Rs 770 crore to Rs 3,382 crore in 2013-14.
Experts say HMT, which was once a leader in the watch segment, controlling over a fourth of the Indian market, lost out to competition over time, especially from Titan. In September this year, the government decided to close down HMT's watch division in a phased manner. In tractors, too, companies like Mahindra & Mahindra now dominate the market.
The case with ITI, which provides communication technology products and services, is a little different. Its sales have fallen sharply and the company continues to report losses at the net level.
Experts, however, believe it is possible to extract value from some of these companies or to revive those. So, if the government moves ahead with privatising or reviving these companies, their shareholders should gain. For example, a revival package for ITI and HMT Bearings (a subsidiary of HMT) was recommended last year. In fact, some companies like Bharat Coking, NEPA and Madras Fertilisers reported profits in 2013-14, though these continued to have a negative net worth with high accumulated losses.
At present, the policy is to first check the viability of reviving sick undertakings; and, if revival fails, these could be privatised through strategic sale of stake.
Nov 17 2014 : The Economic Times (Kolkata)
Govt Finally Gets Moving to Shutter Terminally Ill PSUs
Dheeraj Tiwari |
New Delhi: |
HMT Watches and Tungbhadra Steel among 6 companies to be closed in first phase
Days after Finance Minister Arun Jaitley indicated that the government was willing to consider the privatisation of sick state-run firms, the Centre has begun the process of shutting some of them.
A senior government official confirmed that a Cabinet note proposing the closure of six companies under the department of heavy industry has been circulated.
The list includes Hindustan Photo Films, HMT Bearings, HMT Chinar Watches, Tungbha dra Steel, Hindustan Cable and the iconic HMT Watches.
In the second round, 15 more loss-making firms will be under consideration, including British India Corporation, IDPL and their subsidiaries.
"Once this gets through, we will look at those firms where no production activity is being carried out or are totally closed," said the official cited. He didn't want to be named.
Government data shows there are 61 sick central public sector enterprises (CPSEs) that had 1.53 lakh employees as on March 31, 2013. The government has been paying the salaries of these employees largely through the budget. Interestingly, HMT watches have been in high demand following indications the company could be shut.
Earlier this month, Jaitley had said that the government would look at privatising some of the loss-making public sector undertakings (PSUs) as taxpayers cannot keep picking up the tab.
"I am open to looking at some PSUs that could do better in private hands," Jaitley had said at the World Economic Forum's India Economic Summit, adding that loss-making firms were being sustained merely on government support, which is not a long-term solution. The Cabinet note seeking closure of the six companies seeks to offer a voluntary retirement scheme (VRS) option at the 2007 pay scale for around 3,600 employees in these firms, along with additional benefits such as encashment of leave and gratuity. "This could amount to a total package of Rs 1,000 crore," said an official with the heavy industry department.
Earlier, Heavy Industry Minister Anant Geete had said his department was drawing up a proposal for a one-time settlement costing around Rs 1,000 crore for employees of six PSUs that are not capable of revival.
"It would be better to make a one-time settlement and eliminate higher recurring expenditure," he had noted.
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