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

Bank loan recovery in recent years has mirrored Hindu rate of growth

At the outset, for those who are not familiar with the nomenclature ‘Hindu Rate of Growth’, it refers to the low economic growth in post-independent India till the 1990s, when several economic liberalisation measures were undertaken. Till the 1990s, the growth rate was around 4%, which accelera

“Indian Navy needs more capabilities to build ships”

As India faces increasing threats from China and Pakistan on sea, Vice Admiral Ajendra Bahadur Singh, Flag Officer Commanding-in-chief (FOC-in-C), Western Naval Command, has said that the Indian Navy needs to scale up its capabilities and have more budgets allocated. Speaking to members of t

Mumbai issues strict guidelines for home quarantine of all international passengers

In view of the emerging threat of the new coronavirus variant, Omicron, the BrihanMumbai municipal corporation (BMC) Saturday issued strict guidelines for surveillance of all international travellers arriving in the metro and especially those from ‘at risk’ nations. Outlining SO

Omicron: Maharashtra revises travel guidelines

A day after the union health secretary wrote to it that its order on SOPs for air travellers was in divergence with guidelines issued by the MoHFW, GoI in view of the Omicron threat, the Maharashtra government on Thursday revised its guidelines for passengers arriving in the state. Issuing

Omicron: Centre asks Maharashtra to follow uniform guidelines

With the threat of Omicron, the new variant of the coronavirus, looming large, the union health ministry has written to the Maharashtra government to align orders issued by the state with the ministry’s guidelines for uniform implementation. The state government in its order dated Nove

Central Railways runs over 800 Kisan Railway trips

To ensure bigger access to farm produce and provide new markets with quick transportation and subsidy at 50%, the Kisan Rail has been bringing prosperity, joy, and hope to farmers of Maharashtra. On November 28, the Central Railway ran its 800th  trip of Kisan Rail from Sangola to Muzaffarpur.

Visionary Talks: Dr. Naresh Trehan, CMD Medanta Heart Institute with Kailashnath Adhikari



Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter