Shutters down on 4, Jaitley warns other PSUs

Jaitley said that over Rs 1.57 lakh crore has been pumped into these enterprises over the past few years

GN Bureau | July 23, 2014



Marking a clear shift in the centre’s policy of running public sector enterprises, finance minister Arun Jaitley on Tuesday asked CPSEs to shape up to deal with free competition in an era when state-run firms had lost monopoly rights and preference.

Jaitley told parliament that four central public sector enterprises (CPSEs), which cannot be revived will be shut down. And in case of seven others, the government is trying to revive them through disinvestment and the joint venture route.

The minister said that 79 CPSEs have incurred losses, of which 49 are sick. At the same time there are 19 that have turned around.

For a decade, the UPA government showed hesitance on shutting down even the terminally sick PSUs. As a result, it kept on pumping money to pay salaries and keep these money guzzling entities alive.

Jaitley said that over Rs 1.57 lakh crore has been pumped into these enterprises over the past few years. While there had been interest from the private sector in some of the units of Cement Corporation, among others, the UPA government failed to decide on the issue.

On Tuesday, Jaitley urged PSUs to learn to function like private business houses in a competitive environment. "The PSUs must learn how to function like any other business organization in a competitive environment and should not be run like a government department," he said while replying to supplementaries in the Rajya Sabha.

Management of loss making PSUs have to be part of market economy, the minister said. The government has also lined up an ambitious asset sale programme and aims to raise over Rs 63,000 crore by selling stakes in state-run firms. It has also outlined the need to provide managerial autonomy to blue chip PSUs to compete globally.

Comments

 

Other News

BHEL unveils 250 MW eco-friendly lignite power plant in Gujarat

  Bharat Heavy Electricals Limited (BHEL), a Maharatna PSU, has successfully commissioned 250 MW unit based on eco-friendly circulating fluidized bed combustion (CFBC) technology, using low grade coal (lignite) as the primary fuel.    The 250 MW lignite

Right to recall not recommended by law panel

  The Law Commission which had examined the issues of right to rejection and the right to recall, has not recommended for the same, the Lok Sabha was informed.   Union minister PP Chaudhary said that the Law Commission of India was requested in January, 2013,

`Shiv Nadar most generous Indian`

HCL founder Shiv Nadar tops the Hurun India Philanthropy list with Rs 630 crores donation towards education sector. Infosys co-founder Kris Gopalakrishnan and his wife Sudha Gopalakrishnan came in second with a donation of Rs 313 crores primarily towards healthcare, social development and education.

Keel for first ship of the 5 CGOPV project laid in GSL

Keel of the first Coast Guard Offshore Patrol Vessel (CGOPV) of the new 5 CGOPVs project for the Indian Coast Guard was laid at Goa Shipyard Ltd (GSL) recently by ADG K Natarajan, PTM, TM Coast Guard Commander (Western Seaboard), in the presence of RAdm (Retd) Shekhar Mital, NM Chairman and Managing Dire

Digital Village pilot project in 1050 gram panchayats

  A pilot project of Digital Village (DigiGaon) is to be implemented in 1050 Gram Panchayats (GPs) spread across 30 States/UTs, the Lok Sabha was informed.   Union minister PP Chaudhary said that the approved outlay for implementation of the project for finan

Delhi Ring Railway may be revived

  The railway ministry is examining the possibility of revival of the Ring Railway in Delhi, union minister Rajen Gohain told the Lok Sabha.   The minister said that Delhi Ring Railway cannot be an alternative to the Delhi Metro. At best, it can supplement th

Video

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter