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

Remove unauthorized constructions without pressure: Thackeray to BMC

Maharashtra chief minister Uddhav Thackeray has instructed the Mumbai civic authorities to take immediate action on unauthorized constructions on war footing. In a virtual meeting held on Wednesday, Thackeray said no illegal construction will be tolerated in Mumbai and called upon the BMC to

Covid norms relaxed; Mumbai restaurants, shops to remain open longer

After extending timings of shops and restaurants as well as the reopening of cinema halls and theatres under specified SOPs from October 22, in view of the festive cheer, the Maharashtra government has allowed restaurants and eateries to remain open till 12AM and shops and establishments to function till 1

Global Hunger Index data collection flawed: Arvind Panagariya

Rubbishing the recently released Global Hunger Index 2021, wherein India has slipped to 101 position to be placed below Pakistan, Nepal and Bangladesh, Arvind Panagariya, professor of economics at Columbia University and former vice chairman, NITI Aayog, has said that data collection and methodologies used

‘Blue Zones’ concept of healthy living and its relevance in India

A long life span free from diseases and disability, the so-called healthy aging, has been a matter of prime interest to humanity. It is widely held that the life expectancy is a function of interplay between various genetic and environmental factors. There is scientific evidence to support the fact that on

Motilal Nehru too had petitioned for release of his son: Vikram Sampath

Defence minister Rajnath Singh’s statement, that Mahatma Gandhi had asked V.D. Savarkar to file a mercy petition before the British, has ignited a debate. Vikram Sampath, a historian and author of a recent biography of Savarkar, says two weeks after Jawaharlal Nehru was lodged in Nabha jail, his

Gati Shakti: The National Master Plan

The launch of the Gati Shakti master plan will be a booster dose for India growth story. The plan, as the name indicates, will ensure Gati, i.e., speed and Shakti, i.e., empowerment to the ₹1 trillion national infrastructure pipeline. The plan will break inter-ministerial silos. For examp

Visionary Talk with Dr Arvind Panagariya, Professor, Columbia University & Former VC, NITI Aayog



Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter