British India Corporation’s textile factory in Kanpur, four men sits in a control room watching computerized gauges eight hours a day. And again, there will be two shifts, with 4 men in each shift, doing the same work. There is no output.
PM Modi, who campaigned in this year’s general election on a promise of “minimum government, maximum governance”, is preparing to invest more taxpayer money in ailing state-owned factories.
The government has announced the closure of six publicly owned companies. Anand Geete, minister for heavy industries and public enterprises, said that, last month about two-thirds of 64 loss-making firms can be revived with more money.
According to officials in New Delhi, the government has set up a committee to examine cash reserves from profit-earning state firms to provide lifelines to the loss-making ones.