Government considers Africa route to help central PSUs

GN Bureau | November 23, 2015




There is a new thinking to make public sector units profitable and the trick lies in going to Africa. Under the plan, the centre will help the PSUs to set up subsidiaries or form joint ventures with state-owned enterprises in poor African countries.

According to The Hindu newspaper, the proposal has been moved by the department of public enterprises (DPE) of the heavy industries and public enterprises (HI & PE) ministry. It is being studied by the ministry of external affairs.

The DPE wants the MEA to influence African countries, especially those with hardly any private capital investment currently, to replicate the ‘Nehruvian’ post-independence period industrial policy of India.

The DPE wants these African countries to reserve several sectors so that these PSUs can operate in a near monopolistic environment for about 15-20 years.

If the plan becomes a reality, many of the PSUs, currently struggling in India due to competition from far more nimble and efficient private sector companies, can get a new lease of life and turn profitable, they said.

The idea took shape when heavy industries minister GM Siddeshwara visited African countries including Malawi, Zambia, Nigeria and Liberia in September. The minister travelled as the special envoy of Prime Minister Narendra Modi as part of preparations for the recently concluded India-Africa Forum Summit in New Delhi.

According to the sources, though the DPE had written to the MEA asking the latter to include a ‘special session’ during the Summit on opportunities and challenges for Indian PSUs in poor African countries, the MEA had demurred citing difficulties in scheduling as most of the arrangements had been almost completed.

The new plan is to ask the MEA to convene a special meeting of all the African high commissioners / senior diplomats stationed in Delhi and elicit their views on the strategy. On its part, the HI & PE ministry will shortly call a meeting of PSUs to discuss the idea.

The development comes even as the centre has identified 58 loss-making PSUs for either reviving or closing them down, and has been holding inter-ministerial consultations to chalk out a viable strategy. It is also planning to raise Rs.69,500 crore from disinvestment of PSUs this year.

Africa is not entirely a new playing ground for Indian PSUs, especially for those in the energy sector.

Comments

 

Other News

PNB fraud: Why we need banking reforms

Billionaire jeweller Nirav Modi, whose properties are being searched after Punjab National Bank reported a massive fraud of Rs 11,000 crore, is a good reason why banking reforms

Gender based atrocities happens across the world: Dr Rashmi M Oza

“Gender based discrimination is worldwide and not alone in India. Offences against women are much more severe in cases of international trafficking, forced prostitution and pornography, women including migrant and refugee women face double barriers on virtue of their gender,"said Dr Rashmi M Oza

Rashtrapati Bhawan hosts LPG Panchayat for beneficiaries

A group of 104 women beneficiaries of the Pradhan Mantri Ujjwala Yojana participated and shared their experiences at LPG Panchayat organised at the Rashtrapati Bhawan on February 13. The women delegation, falling under the BPL category, came across 27 states to narrate their success stories

Bengaluru metro gets coach unit from BEML

BEML Ltd, a defence PSU, has delivered the first intermediate metro coach (car) unit to Bengaluru Metro Rail Corporation Limited (BMRCL). The intermediate car would be integrated with the existing three-car train sets to double the present passenger carrying capacity of the Bengaluru’

BHEL gets order for emission control equipment from NTPC

BHEL has got Rs 560 crore order for the supply and installation of flue gas desulphurisation (FGD) system from NTPC for 2x490 MW National Capital Power Station (NCPS). The Indian power sector has seen an uptick in the ordering of emission control equipment due to the revised and more stringe

UBI: The devil is in the detail

Instituting Universal Basic Income (UBI) requires public support spanning demographic lines, executive backing, and strong macroeconomic fundamentals. Weaken any leg of this tripod, and the redistributive preferences of any government may shift in favour of traditional welfare support and focusing on econo

Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter