Shut down one PSU, sell four others: NITI Aayog -Governance Now

Shut down one PSU, sell four others: NITI Aayog

The Aayog had earlier submitted a list of 74 sick and loss-making CPSEs for closing down and strategic sales

GN Bureau | July 21, 2016

#PSUs #NITI Aayog #CPSEs

NITI Aayog may recommend the closing down of one sick central public sector enterprise (CPSE). Four enterprises could be up for strategic disinvestment in the first phase of the government plan of shutting down and restructuring of loss-making state-owned companies, according to a news report published in The New Indian Express.

NITI Aayog has been given the task to identify CPSEs where the government should exit from management control, to the extent they should exit and what should be the mode of divestment.

The Aayog had earlier submitted a list of 74 sick and loss-making CPSEs for closing down and strategic sales. According to various news reports, the prime minister office (PMO) has directed Niti Aayog to prepare a cabinet note for the shutting down of the state-owned company. The government will examine the response from various stakeholders including trade unions before taking any final move.

Earlier, a group of secretaries in a presentation to Prime Minister Narendra Modi had said that the government should prepare a plan for exit from sectors like hotels, air services and travel agency. There are at least 16 CPSEs which are incurring losses regularly for the last three years, including Hindustan Cables Limited, Hindustan Papers Limited, and Richardson & Cruddas Limited.

The cabinet committee on economic affairs, in its meeting on January 6, 2016 had approved the closure of HMT Watches Limited, HMT Chinar Watches Limited and HMT Bearings Limited by offering an attractive VRS to its employees and disposal of movable and immovable assets.

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