Government Declares MTNL Sick Public Sector Enterprise

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National carrier Air India and state-run telecom company MTNL have joined the list of sick central public sector enterprises (CPSEs), the government told the Lok Sabha on Tuesday. It also said that five CPSEs, including three units of Hindustan Machine Tools (HMT) will be shut soon. Minister of state for heavy industries Anant Geete said there were 65 units in the list of sick public sector units (PSUs) as of March 31, 2014.

“The reasons for their sickness vary from enterprise to enterprise and included obsolete plants and machinery, heavy interest burden, resource crunch, surplus manpower and shortage of working capital,” he said. The government has budgeted Rs 3,205 crore for infusion into Air India in FY16 compared with Rs 6,380 crore in the current fiscal. Original post at ET Telecom

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Wahengbam Rorrkychand

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