The central government is preparing to take a big decision on the loss making government companies for a long time. Two big officials associated with this matter said that the government is reviewing these loss-making companies running under the Ministry of Heavy Industries. According to the news of business news website Mint, on the condition of anonymity, on a case by case basis, officials say that the government has three options regarding these companies. First, the operations of all such companies should be stopped. Second is the restructuring of these companies and the third last option is disinvestment.
The government has closed these companies: In recent years, the central government has closed several companies making losses. This included Scooters India and Bharat Pump & Compressors Limited sometime back, Tungabhadra Steel Products Limited in 2015, HMT Watches, HMT Chinar Watches and HMT Bearings in 2016.
29 companies with Ministry of Heavy Industries: As per the Annual Report of the Department of Public Enterprises, there are 29 public sector companies under the Ministry of Heavy Industries. Out of which 17 companies are currently operating. Out of these 17 companies, 6 are in profit, while 11 companies are in loss. Out of the remaining 12 companies, 5 companies are not operating while locks have been hung on 7 companies.
According to the annual report, the profitable companies include Engineers Project (India) Ltd., Braithwaite, Burne & Jessop Construction Ltd., HMT Ltd., HMT (International) Ltd., Richardson & Cruddus (1972) Ltd. and Bridge & Roof Co. (India) Ltd. is incorporated.
Loss-making companies include HMT Machine Tools (which is a subsidiary of HMT Limited), Rajasthan Electronics & Instruments, Bharat Heavy Electricals Limited (BHEL), NEPA Limited, Hindustan Salts Limited, Sambhar Salts Limited, Andrew Yule & Co. Ltd., Heavy Engineer Corporation Limited and Cement Corporation Limited. Let us tell you that Bharat Heavy Electricals Limited (BHEL) had recorded a loss of Rs 14 crore in the quarter of December 2021, while the company had a loss of Rs 251 crore during the same period last year.