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Efficiency enhancement achieved through disinvestment: Shourie
New Delhi, Aug 06: Government has divested its stakes in 33 units including 22 hotels of ITDC and Hotel Corporation of India since 1999-2000 and there has been an improvement in the performance of most PSUs after disinvestment, Lok Sabha was informed today.
New Delhi, Aug 06: Government has divested its stakes in 33 units including 22 hotels of ITDC and Hotel Corporation of India since 1999-2000 and there has been an improvement in the performance of most PSUs after disinvestment, Lok Sabha was informed today.
Modern Food Industries (India) and Paradeep phosphates
were loss-making companies but after disinvestment sales have
increased and loss levels significantly reduced, the
Disinvestment Minister Arun Shourie said in written reply.
Indian petrochemicals corporation, a profitable company disinvested in June, 2002 has reported a six per cent increase in gross turnover and 90.65 per cent increase in net profit in 2002-03 compared to the previous year, he said. The minister said in Balco, various operational and input costs have been reduced, production of hot metal increased and the new management is considering a substantial increase in the unit's capacity.
"These examples show that efficiency enhancement has been achieved by disinvested PSUs", he said.
In reply to another question, Shourie, who is also the Minister of Communications and Information Technology, said the government has not taken any decision for disinvestnment of telecom companies BSNL and MTNL.
Both the PSUs are already board managed companies, he added. He said government has disinvested 39 PSUs through sale of minority shares including state trading corporation and Bharat Heavy Electricals Limited.
Bureau Report
Indian petrochemicals corporation, a profitable company disinvested in June, 2002 has reported a six per cent increase in gross turnover and 90.65 per cent increase in net profit in 2002-03 compared to the previous year, he said. The minister said in Balco, various operational and input costs have been reduced, production of hot metal increased and the new management is considering a substantial increase in the unit's capacity.
"These examples show that efficiency enhancement has been achieved by disinvested PSUs", he said.
In reply to another question, Shourie, who is also the Minister of Communications and Information Technology, said the government has not taken any decision for disinvestnment of telecom companies BSNL and MTNL.
Both the PSUs are already board managed companies, he added. He said government has disinvested 39 PSUs through sale of minority shares including state trading corporation and Bharat Heavy Electricals Limited.
Bureau Report