Financial restructuring of CPSEs soon

Loss-making CPSEs may be merged with profitable ones for investment funds

GN Bureau | May 30, 2016


#CPSE   #PSU   #financial restructuring  

A road map for the financial restructuring of central public sector enterprises (CPSEs) through various mechanisms, including mergers, would be drawn up soon. Also, the government is looking for options where weak CPSEs can be absorbed by profitable ones to leverage assets and generate resources for fresh investments, The Economic Times reported.

A report submitted by NITI Aayog on loss-making CPSEs had suggested consolidation in some cases. 

The news report said that eventually the merger will not be restricted to only loss-making entities.

In its recommendations, the Aayog had also suggested that in some cases revival of a sick public sector undertaking should not be on a standalone basis.
According to the government data, there are about 80 enterprises that made a combined loss of Rs 27,300 crore at end of FY15. The cabinet last week approved the takeover of Hindustan Steel Works Construction Ltd (HSCL) by National Buildings Construction Corp. (NBCC). This is the first takeover by a CPSE of another which is not functioning under the same administrative ministry.

Finance minister Arun Jaitley in his budget speech 2016 had said that the government will encourage CPSEs to sell assets such as land and manufacturing units, to unlock value and make investments in new projects, and NITI Aayog will identify the CPSEs for strategic sale.
 

Comments

 

Other News

NTPC adds highest ever capacity; records highest single day generation

  With commissioning of 800 MW unit at Kudgi in Karnataka, 250 MW unit at Bongaigaon in Assam and 20 MW at Bhadla solar in Rajasthan, the total installed capacity of National Thermal Power Corporation (NTPC) group has reached to 49,943 MW.   The 12th plan cap

Why do we need Aadhaar?

 Aadhaar is arguably one of the most convoluted public policy interventions in India’s history. It has been more than eight years, yet there is little clarity on the exact purpose of the biometric-based unique identification project.  Let me take you through an event which I witne

AAI signs MoU with Daman and Diu admin for maintenance of Diu airport

The airports authority of India (AAI), a Miniratna PSU, has undertaken operation, development and maintenance of Diu airport from Diu administration.    A memorandum of understanding demonstrating the responsibilities was inked on March 20 between the union terri

PSU performance: Better than expected

Central public sector enterprises (CPSEs) have done quite well despite facing headwinds, according to the Public Enterprises Survey (2015-16) that was tabled in parliament on March 21. The net worth of all the CPSEs have gone up and the overall net profit has zoomed. Their contribution to the cen

National Health Policy: Old prescription, new date

After much discussion and pondering over for more than two years, the cabinet has approved a new National Health Policy, scrapping the old one which was formulated in 2002. The government aims to increase the public health expenditure to 2.5% of the GDP by 2025. The policy formulated in 2002 aimed

It’s traumatic, says African student

  “We have requested more security from the government of India and the Uttar Pradesh government,” said Abdou Ibrahim, senior adviser, Association of African Students (AASI)  following an attack on four students from Africa in Greater Noida, Uttar Pradesh. &n

Video

यूपी में नकल करने वालों की अब खैर नहीं

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter