MUMBAI: Better days ahead for loss-making but popular brands: Maharashtra government can now take over bankrupt but strategically important entities belonging to government, public, private or semi-government establishments, to an extent by even participating in their auctioning.
Deputy chief minister Devendra Fadnavis on Monday told the state assembly that the state-formed asset restructuring company (ARC) can take over loss-making entities such as toll companies or sugar factories which are otherwise sold to private companies at a very low price. He said these buyers upon buying them at throwaway prices obtain loans from private banks to restore their businesses and eventually earn profits. “Instead, we can restructure them,” he added.
