NEW DELHI: Union Finance Minister P. Chidambaram told the Rajya Sabha on Tuesday that the Government was in the process of identifying public sector units (PSUs) that were too sick to be revived.

Replying to a discussion on supplementary demands for grants of Rs. 14,661 crores with cash outgo of Rs. 6,818 crores, he said last year the Government had given Rs. 550 crores for payment of salaries and dues to public sector companies that were unable to pay workers. It gave another Rs. 140 crores to pay unpaid workers.

Investment fund

"It would be wise to take a decision whether some companies that are too sick should be revived. That is why we created a National Investment Fund. The returns from the Fund would be given for capital investment in viable and revivable industry," Mr. Chidambaram said.

Referring to the Board of Reconstruction for Public Sector Enterprises, he said the institution, put in place by the United Progressive Alliance Government, was meant for "reconstruction" of sick public sector companies, but only those that were viable and revivable. Some were too sick to be revived. The Cabinet Committee on Economic Affairs would take a decision on them.

The supplementary demands for grants were approved by Parliament after the Rajya Sabha returned it by a voice vote. The Lok Sabha had already passed them.

Mr. Chidambaram said the performance of the Government was better than that of last year, although last year's economic growth was "creditable." Inflation was at its lowest as compared to the last two years, the foreign exchange reserves stood at $142 billion and services, industry and agriculture was expected to do better. More jobs would be created in 2005-06. "Economic growth this year will be higher than last year. States are flush with funds. They should now be able to spend."

Earlier, Bharatiya Janata Party member Kalraj Mishra charged the Government with coming up with supplementary demands within six months of the general budget to "show a reduced fiscal deficit in the general budget."

Mr. Chidambaram assured the House that each of the proposals, including for rural telephony, Delhi metro, dues of Vayudoot and fast-track courts, had been made after the presentation of the general budget on February 28.

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