The programme started in 2003-04 and ended in 2006 -07; only a few remainders are yet to be completed.
Units that could be made viable with financial and manpower restructuring and a moderate amount of investment have been restructured under Government ownership.
Units that required infusion of technology, large investment and operational flexibility were converted into joint ventures by inducting a strategic partner through a well laid down transparent process.
Units that were structurally unviable due to obsolescence of product/technology and such other reasons were closed.
In addition to restructuring enterprises under its own control, Public Enterprises Department was given the nodal responsibility to co-ordinate restructuring other State PSEs under different departments of GOWB. A total number of 34 State PSEs were taken up in Phase -I restructuring.
A stand alone grant of Rs. 208.67 Crore was received from Department For International Development (DFID), Government of UK for Phase -I. GOWB put in the balance fund for the project.
Units that were restructured and retained under Government ownership underwent Manpower, Financial and Business restructuring on the basis of recommendations by expert consultants. Financial restructuring includes conversion of GOWB loan into equity followed by capital reduction to enable restructured units to approach financial institutions for further funds with a clean balance sheet. Business restructuring involves development of diverse product portfolio, strengthening of marketing activities etc. Manpower restructuring involves Early Retirement Schemes (ERS) with social security support.
EARLY RETIREMENT SCHEME (ERS)
Monetary compensation component - Employees facing displacement from employment as a consequence of restructuring measures receive d an Ex-gratia compensation with two options depending on their age profiles.
In addition, the employees were entitled to the normal retirement benefits like Notice Pay, Leave Encashment, Gratuity and Provident Fund.
Medical and accident/disability insurance coverage -The employees facing displacement received reimbursement of hospitalisation expenses for medical treatment of themselves or their spouses, upto Rs 50,000 per annum. Further, such employees were compensated against accident/disability upto to Rs 50,000 per annum.
The Government of West Bengal took lead in providing such important social security support to employees facing displacement from employment in the public sector as a consequence of its restructuring.
Social Safety Net Programme (SSNP) –Employees facing displacement were re-skilled under this programme to facilitate either their self-employment or alternative gainful employment. Training programmes provided a wide choice of re-skilling opportunities that were designed based on labour market demand in the ir respective locations of stay and their qualifications. For employees incapable of gainfully benefiting from this support for reasons that included advanced age, option was available to nominate a dependent son/daughter in lieu
thereof.
More than 6,000 employees opted ERS in Phase -I. All of them were covered under Health Insurance. About 3,000 persons completed training of which nearly 35% have been gainfully redeployed uptil now.
RETAINED AND JV UNITS
The following 4 PSEs were retained after restructuring :
a. Westinghouse Saxby Farmer Ltd.
b. Durgapur Chemicals Ltd.
c. Gluconate Health Ltd.
d. Britannia Engineering Ltd.
Shalimar Works (1980) Ltd. — State Government has taken up the company for restructuring under the Government’s recently.
Performance of retained and restructured units
Rs. in Lakh
Name of unit
Sales
Operating Profit
Westinghouse Saxby Farmer
Britannia Engineering Ltd.
Gluconate Health Ltd.
Durgapur Chemicals Ltd.
2006-07
2007-08
2008-09
(Provisional)
9844.00
9126.64
9714.50
1410.07
1823.89
2131.02
1286.48
1431.48
2501.00
3383.00
3737.00
3800.00
2006-07
2007-08
2008-09
(Provisional)
133.59
97.00
25.00
154.45
260.41
327.15
119.00
68.58
269.02
269.00
(-)23.00
(-)249.00*
* Such huge losses have incurred owing to transition to new plant.
The following 4 units have been converted to Joint Ventures
a. Engel India Machines & Tools Ltd.
b. West Bengal Chemicals Ltd.
c. Great Eastern Hotel
d. West Bengal Agro-Textiles Corporation Ltd.
Performance of joint venture units
Rs. in Lakh
Name of unit
Sales
Operating Profit
Engel India Machines & Tools
W. B. Chemicals Ltd.
Great Eastern Hotel
West Bengal Agro-Textiles Corporation Ltd.
2006-07
2007-08
2008-09
(Provisional)
5319.00
6895.00
8500.00
273.78
356.54
627.28
New hotel under construction
357.14
958.51
1420.00
2006-07
2007-08
2008-09
(Provisional)
(–) 188.00
77.00
100.00
14.49
18.05
62.72
(-)96.08
(-)26.85
9.00
All the Joint Venture units are operating successfully.
21 units have been closed on grounds of structural unviability.
1 unit since taken up for restructuring with Government ownership.
