15 sick PSUs to be shut

While the steps taken by the government suggests that it was serious about shutting down chronically loss-making PSUs, the plan is facing resistance from some of the administrative ministries.

GN Bureau | September 27, 2016


#Loss making PSUs   #Niti Aayog   #Nripendra Misra   #HPCL Biofuels   #British India Corporation   #Elgin Mills  

 The government has decided to shut down 15 loss-making public sector units (PSUs), of which at least five have been cleared by the cabinet. By taking this step, it is opting to go against internal advice of reviving three of them. NITI Aayog has identified another half-a-dozen sick PSUs for closure but their fate remained uncertain amid hectic lobbying by ministries, which want to keep them running, according to a news report published in Times of India. 

The report added that the petroleum ministry has opposed shutting down of HPCL Biofuels, while the textiles ministry has managed to scale up the issue of closure of ailing British India Corporation and Elgin Mills to the level of PMO. At least three pharma PSUs were referred to a panel of ministers, which has so far opted not to close down Hindustan Antibiotics. After the successful shutting down of some HMT arms and the closure of Central Inland Water Transport Corporation, the government had sought to suggest that it was serious about shutting down chronically loss-making PSUs. However, the plan is facing resistance from some of the administrative ministries.
 
After NITI Aayog submitted its recommendations, principal secretary to PM Nripendra Misra, who has been involved with the exercise, indicated that the government's keenness to move ahead on a path may not be politically popular. What is, however, strengthening the government's case is that these companies have not seen significant addition to manpower in recent years and existing employees are being given a liberal severance package. The NITI Aayog, tasked with preparing a roadmap for ailing PSUs, had submitted two separate lists of sick and loss-making PSUs — one comprising those that can be closed down and the other of those where government can divest its stake.
 
Out of 74, the Aayog had suggested status quo in case of two PSUs, strategic disinvestment of 10, plan for revival with option for strategic disinvestment for 22, transfer of ownership of six, merger of three, long term lease of five and closure of 26.
 

Comments

 

Other News

BSNL unveils satellite phone service

Minister of state for communications (I/C) Manoj Sinha has launched BSNL’s satellite phone service that will be offered to government agencies in phase one and later opened for others.  While unveiling the new service, Sinha said BSNL works where no other network is present.

Govt to raise Rs 2,360 crore for renewable energy

The cabinet has given it’s green signal to raise bonds of Rs 2,360 crore for renewable energy. The bonds will be raised by the ministry of new & renewable energy (MNRE) through the Indian Renewable Energy Development Agency (IREDA), a Miniratna enterprise, during current fiscal.

CEA’s campaign against ‘poor standards’ finds some success

Chief economic advisor Arvind Subramanian’s campaign for some sense in country ratings has finally found some success. Global rating agency Moody`s Investors Service has downgraded China`s long-term local currency and foreign currency issuer ratings to A1 from Aa3 and changed the outlook to stable fr

Doubling farmers’ income challenging, yet attainable: Niti Aayog

The low level of farmers` income and year to year fluctuations in it are a major source of agrarian distress. This distress is spreading and getting severe over time impacting almost half of the population of the country that is dependent on farming for livelihood, said a Niti Aayog policy paper.

Governance, development no longer govt’s agenda: Civil society

The civil society has strongly criticized the Narendra Modi government that completes three years in office. Citizens’ Report: Promises and Reality tha

Parody of the health mission

Improving the availability of health workers, particularly at the sub-centre level, has been one of the thrust areas of the national rural health mission (NRHM).  Back in 2005, most of the sub-centres in the country were run by a single auxiliary nurse midwife (ANM). ANMs were overbu



Video

प्रभुनाथ सिंह को हत्याकांड में उम्रकैद की सजा

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter