Govt to shut down 15 loss-making PSUs
Cabinet
Approves Closure Of At Least 5
The
government has decided to shut down 15 loss-making public sector units, of
which at least five have been cleared by the cabinet, while opting to go
against internal advice and revive three state-run companies.
Sources
told TOI that there were another half-a-dozen sick public sector companies,
which had been identified by NITI Aayog for closure, but their fate remained
uncertain amid hectic lobbying by ministries, which want to keep them alive in
what may be an effort to protect their turf.
The petroleum
ministry has opposed shutting down of HPCL Biofuels, while the textiles
ministry has managed to elevate the issue of closure of ailing British India
Corporation and Elgin Mills to the level of PMO. At least three pharma PSUs
were referred to a panel of ministers, which has so far opted to not to close
down Hindustan Antibiotics.
Following
the heavy industry ministry successfully piloting a proposal to shut down some
HMT arms and the shipping ministry getting the cabinet go-ahead for the closure
of Central Inland Wa ter Transport Corporation, the government had sought to
suggest that it was serious about shutting down chronically loss-making PSUs,
which were a drain on the exchequer. However, the plan is facing resistance
from some of the administrative ministries. After NITI Aayog submitted its
recommendations, principal secretary to PM Nripendra Misra, who has been
involved with the exercise, indicated that the government's keenness to move
ahead on a path may not be politically popular. What is, however, strengthening
the government's case is that these companies have not seen significant
addition to manpower in recent years and existing employees are being given a
liberal severance package.
“The
winding up of (some of) these units, out of 74 lossmaking PSUs identified by
the NITI Aayog for closure or sell off, has received a go-ahead from PMO,“ said
an official, adding that the list was finalised after several round of
consultation held by Misra with respective ministries.
The NITI
Aayog, tasked with preparing a roadmap for ailing PSUs, had submitted two
separate lists of sick and loss-making PSUs -one comprising those that can be
closed down and the other of those where government can divest its stake.
(TOI)
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