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

3,543 ‘Shramik Special’ trains transport 48 lakh people in 26 days

Close to 48 lakh migrant labourers have been able to reach home from the cities they were working in, as the Indian Railways have run a total of 3,543 “Sharmik Special” trains from May 1. Following the home ministry order regarding the movement by special trains of migrant worker

How Jeevan Raths have helped 52,000 migrants in Maharashtra

Before the novel coronavirus hit it, Mumbai about 10-12 lakh labourers from elsewhere had made it their home. The figure for the state of Maharashtra was another 18-20 lakh. As the pandemic spread and the Maximum City emerged as the worst-hit place in India, all economic activities came to an end, and with

China is practicing attack as the best form of defence

For the rest of the world, it is not easy to understand China when it comes to politics or economics. Under pressure from the international community, it has accepted to open the country for a “comprehensive” probe into the origin of the deadly coronavirus. But it is not clear whether the Asian

Corona warriors to “flush the virus” in Mumbai

Even as humanitarian support is pouring in to help distressed migrants amid Covid-19 pandemic and the lockdown, civil society organizations and NGOs are working for sanitation of community toilets which have become breeding source of virus infection. Every community toilet has 20 seats. Each

How lockdown was used to shore up health infrastructure

India, completing about two months of lockdown to protect against the spread of the Novel Coronavirus, has made good use of the time to improve health infrastructure, the government has said. Countering media reports “about some decisions of the government regarding the lockdown implem

Railways resume services from June 1

As India begins to learn to live with Covid-19 and come out of nearly two-month long lockdown, regular train services are set to resume from June 1 in a graded manner, even as more ‘shramik’ special trains are planned. The railway ministry, in consultation with the health ministr



Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter