sick PSUs are also hoping for good days. The important question is will the government take measures to revive the loss-making entities or will it sell them to private players.
Union commerce and industry minister of state Nirmala Sitharaman on June 7 said in Hyderabad that Prime Minister Narendra Modi has asked the ministry to look into the issues of sick Public Sector Undertakings(PSUs) and sort out the issues."
She said, “In Telangana also there are lot of PSUs which are in bad shape. The government would look into their problems and try to help them.’’
The issue of sick PSUs also figured in the pre-Budget consultations that Finance Minister Arun Jaitley held with industry leaders. Those who attended in the meeting held in New Delhi includes Ajay S. Shriram, Confederation of Indian Industries (CII); Sidharth Birla, Federation of Indian Chambers of Commerce and Industries (FICCI); Rana Kapoor, ASSOCHAM; Sharad Jaipuria, PHD Chammer of Commerce and Industry; B.P. Rao, CMD, BHEL; J. Vadivelu, South Indian Chamber of Commerce and Industry; among others.
Some of the proposals that were put forward before the minister include massive investment in the infrastructure in order to stimulate the economy for job creation with a key role for the public sector undertakings (PSUs), PSU should be strengthened and expanded, disinvestment of shares of profit making public sector units should be stopped forthwith. Budgetary support should be given for revival of potentially viable sick Central PSUs.
The ban on recruitment in Government departments, PSUs and autonomous institutions (including recent Finance Ministry’s instruction to abolish those posts not filled for one year) should be lifted.
Proper allocation of funds be made for interim relief and 7th Pay Commission.
As of March 2012, 64 of India’s 260 Central Public Sector Enterprises (CPSEs) and their subsidiaries had been declared sick and they have been approaching Board of Reconstruction of Public Sector Enterprises (BRPSEs) and the Board for Industrial & Financial Reconstruction (BIFR) for financial assistance.