Chandigarh, February 7
The Punjab government has decided to sell its stake in Punjab Communications (Puncom) as well as in the Punjab Alkalies and Chemicals Limited (PACL). The decision has been taken during the Cabinet sub-committee on disinvestment, during its meeting held here recently.
Highly placed sources in the Punjab government informed The Tribune that the department of industries and commerce had been asked to work out a proposal of disinvestment of Puncom and PACL. Once this proposal was ready, it would be examined by the core group of officers and its recommendations would be brought before the Cabinet sub- committee on disinvestments.
The committee observed that while financially Puncom was running into profit, technically its viability in the future was quite bleak. It was noted that the profits earned by the
company was more due to interest earned on the Rs 80 crore cash reserves of the company, rather than from its operations. Over the past five years, the once profit making venture of the Punjab government had been running into annual losses of Rs 5 crore. From having an annual turnover of Rs 200 crore, the turnover of the company is just Rs 5 crore, till date during this fiscal.
Officials said though after a long time Puncom had bagged two orders from BSNL worth Rs 165 crore, the bids were made by the company to project it as financially viable and invite high bids at the time of disinvestments. Puncom had collaborated with a Chinese concern Huwai, and Ordyn for bidding and getting the orders from BSNL.
Officials said the government’s decision to disinvest its stake in PACL was based on the premise that alkalies business was cyclical.
The Cabinet sub-committee has observed that though the company has been into profit in the past, but profitability has been coming down in the recent years. Sources added that the government would look for a strategic buyer of the two companies. It has been decided to sell the entire share of the company to a strategic buyer. The government, however, would ensure that the interests of the employees and the asset base of the companies were safe.
