New Delhi: A committee set up to suggest ways to make four ailing steel PSUs efficient and profitable is likely to submit its report by 12 August, a top government official said.
The steel ministry had appointed the committee in June to examine the structure and functioning of the four state-run entities — MSTC, FSNL, KIOCL and HSCL — and suggest ways to strenghten their operations.
“The committee will now in all probabilities submit its report by 12 Aug It is in the process of formulating its recommendations. It has been given 15-day extra time,” steel secretary P K Rastogi told the agency.
The committee, led by former CMD of Kudremukh Iron Ore Company Ltd (KIOCL) P Ganesan, was given two months to submit its recommendations regarding the four PSU’s re-organisation, merger with other companies or structural re-alignment.
For KIOCL, the ministry is mulling a strategic- partnership with iron ore miner NMDC. After a Supreme Court ban on mining in Western Ghats for iron ore in 2005, the company was finally shut last year.
Besides looking for structural re-arrangements in MSTC, FSNL and KIOCL, the Steel Ministry is pushing for the revival of Hindustan Steelworks Construction Ltd (HSCL) whose net worth has slipped into the negative.
The company’s revival plan has already been approved by the Board of Reconstruction of Public Sector Enterprises. It has approved the ministry’s proposal for writing-off of HSCL’s loans over Rs1,000 crore along with accrued interest.
The proposal for capital infusion of Rs518 crore to HSCL for repaying bank loans taken between 2002 and 2005 in course of giving VRS to its employees, has also been cleared.
Ferro Scrap Nigam and MSTC, however, have been doing normal business, but the ministry intends to widen their business horizon.