In West Bengal there are two categories of public sector undertakings, one controlled by the Centre and other by has State Government.

The Central Government controlled units number 21, most of which are sick and the Central government being pre-private sector, takes little interest in reviving them. These units are being discriminated against by the Central government in providing working capital or supplying them modern technology to ensure marketing of their products. Instead the concerned authorities have gone ahead with introducing voluntary Separate Scheme in six of them although their revival schemes are being considered by the Bureau of Industrial Finance and Rehabilitation. In plain and simple words, the employees of these six units are being asked to voluntarily leave their jobs. The Centre wants to sufficiently reduce the complement of workers and retain a skeletal staff, if at all it wishes to run the units. The units under consideration are Mining and allied Machinery Corporation (MAMC,) Bharat Opthalic Glass limited (BOGL), Cycle Corporation of India, Rehabilitation Industries Corporation, National Instruments limited, and Waybird (India) Limited.

Chief Minister Jyoti Basu last week wrote a letter to the Prime Minister, Mr. Atal Behari Vajpayee requesting him to arrange for reviving these six industrial units. In addition to these units he referred to the case of the Tyre Corporation of India’s (Tangra Unit). The BIFR is already considering revival package for the Tyre Corporation’s Tangra unit. Basu wanted the Prime Minister to give due weight to the views of trade union finalizing revival schemes.

In West Bengal 0.4 million people are employed in public sector undertakings controlled by the Centre. Of these 21 are sick and the question of revival of these units are being considered by the BIFR.

The BIFR has, however approved revial scheme in respect of nine units. In respect of four units the BIFR has agreed to hold hearing about the feasibility their continuing operations. The BIFR has however recommended that two of the 21 units be closed down. No decision has been take about the remaining six units. As the BJP-led government at the Centre has formulated policies favouring the private sector, it will not be inopportune to veer round the view that the BJP government wants to send the cases of the sick units to the BIFR to hasten the closure of the public sector units.

The picture is contrary in West Bengal if one judges the role of the Left Front Government in the State. The State Government has even given loans in the form of deferred payment of sales tax at nominal interest to sick public sector units controlled by the Centre in West Bengal. The revival package for these six industrial units have been approved by the BIFR. These units are: Bharat Brakes and Valves, Bengal Chemicals and Pharmaceuticals Limited, Rerole Burns Limited Smith Stanistreet Pharmaceuticals limited and Jessops and Company. The total loan amounts to more than Rs. 460 million.

How the Centre's policies are adversely affecting the sick units in West Bengal controlled by the Centre itself. It will be evident from its decision taken in 1998-99 regarding placing of orders through the open tender system. The wagon committee formed by the Rajya Sabha and the Railway Standing Committee had recommended that 25% of the wagon orders only be distributed through the open tender system. But overruling these recommendations the Government opted for 100% open tender system jeopardising the prospects of the wagon building units in West Bengal such as Jessops, Braithwaite, Burns Standard. The result was catastrophic. Since these units depend principally on wagon orders, these industries have little prospects to become viable in the foreseeable future. Not only in West Bengal, public sector units spread over in other States will be facing the same bleak prospects. The fate of sick units for which the BIFR has approved revival scheme, will not be different either as discriminatory treatment will plague these unity.