The Board Reconstruction of Public Sector Enterprises (BRPSE) today gave away the BRPSE Turnaround Awards 2012 to two Central Public Sector Enterprises (CPSEs) – Hindustan Copper Ltd. (HCL) and Konkan Railway Corporation Ltd. (KRCL), for having posted profits continuously for three years after their revival.
Board for Reconstruction of Public Sector Enterprises
The Board for Reconstruction of Public Sector Enterprises (BRPSE) was established in December 2004 as an advisory body to advise the Government on the strategies, measures and schemes for strengthening, modernizing, reviving and restructuring of public sector enterprises.
The mandate of BRPSE includes financial, organizational and business(including diversification, joint ventures, seeking strategic partners, merger and acquisition) restructuring of Central Public Sector Enterprises(CPSEs) and suggest ways and means for funding such schemes.
The Board comprises a Chairman in the rank of Minister of State, three Non-official Members, three Official Members and three Permanent Invitees.
Of the 62 cases recommended by BRPSE, the government has approved the revival of 40 CPSEs. More than 20 of these once sick CPSEs have managed to turn it around and are posting profits.
Success Stories of PSU revival
Hindustan Copper Ltd:
- Hindustan Copper Ltd was set up in November 1967 with 99.59% equity owned by Government of India.
- Only Company owning substantial resources (623 million tonne with average grade of 1.04% of copper content) & reserves ((411 million tonne with average grade of 1.05% of copper content) of ore of copper in India. Owns all the operating mining lease of copper ore.
- Started incurring losses from 1995-96 onwards.
- The Government approved the revival plan in June, 2007 of non-cash assistance of Rs. 612.94 cr.
- Achieved turnover of Rs.1638 cr. and Profit Before Tax of Rs. 473 cr. in 2011-12 with net worth of Rs.1398 crore as on 31.3.2012.
- A zero debt Company with no accumulated losses.
Konkan Railway Corporation Ltd. (KRCL):
- 1st railway project in the country built on BOT (Build, Operate & Transfer) principle. Started in 1990 and completed in 1998 at a cost of Rs. 3555 cr. It joins Mumbai and Mangalore( Total length of 741 Km line) with reduction of 1100 Km length.
- Incurred loss till 2008-09 due to high interest burden and non- materialization of freight tariff projected. Net Worth was eroded completely in the year 1999-2000.
- KRCL had incurred losses till 2008-09 with negative net worth of Rs. 2313 crore, accumulated losses of Rs. 3116 crore and total debt of Rs. 5425 crore as on 31 March 2007.
- The Government approved capital restructuring on 4 December 2008 of Rs.4079.51 cr.
- Posted profits continuously for the last three years from 2009-10. Net-Worth became positive and debt-equity ratio improved. Earned profit of Rs. 15 crore in 2011-12 and has net worth of Rs. 1572 crore as on 31 March 2012.Developed various innovative technologies to re-define the rail-guided systems in terms of safety, efficiency and productivity. Diversified into construction of tunnels and bridges.