Government plans to sell seven CCI units
The government plans to sell seven non-functional units of Cement Corporation of India (CCI) on the block and invest the proceeds into the three financially viable units of the public sector cement producer. SBI Caps had done the valuation of these units and put their combined value at Rs 800 crore. But the Parliamentary Standing Committee has recommended that these units should be revived through joint ventures or leased out to private players. The ministry is not too keen to attempt a revival of these units as experience has shown that revival of terminally sick units does not reap any benefit in the long run. The government had in 2008 planned to sell six units of Cement Corporation and had appointed IFCI Ltd as consultants for the sale. But the process was put on hold following opposition from political parties and trade unions. The heavy industries ministry is of the view that it would be better to sell these units and deploy a part of the proceeds in strengthening Cement Corporation's functioning units. The ministry is of the opinion that some part of the proceeds can also be utilised to pay off loans and to strengthen the human resources.