Saturday, February 7, 2015

Govt may sell sick PSUs for revenues; Announcement likely in budget

THE Narendra Modi-led NDA government is preparing a roadmap to sell off loss-making public sector undertakings, which are lying idle, to generate revenues for 2015-16, says a media report.
Quoting an official source, the report says...
that the list of PSUs to be privatised will be finalised, and a plan about which ones to be taken up in the first stage will be finalised.
Finance minister Arun Jaitley is likely to make an announcement to this effect in the forthcoming budget to be presented on February 26.
“The finance ministry is of the view that a few loss-making state-owned companies need to be privatised, and this will also help generate revenue in the next financial year, which would be the first full year for the NDA government,” the official told a leading the daily.
Earlier, the government had decided to shut down six ailing PSUs completely.
The list includes Hindustan Photo Films, HMT Bearings, HMT Chinar Watches, Tungbhadra Steel, Hindustan Cable and the iconic HMT Watches.
In the second round, 15 more loss-making firms will be under consideration, including British India Corporation, IDPL and their subsidiaries.
Government data shows there are 61 sick central public sector enterprises (CPSEs) that had 1.53 lakh employees as on March 31, 2013. The government has been paying the salaries of all these employees largely through the budget.
A committee of secretaries headed by Cabinet secretary Ajit Seth has also approved new parameters for revival of sick PSUs.
The government has also set up a committee under the NTPC chairman to explore the possibility of setting up a separate entity funded by financially strong CPSEs to look at management and revival of sick companies. Profitable PSUs have also offered to bail out loss-making companies provided their efforts are counted toward mandatory two-percent corporate social responsibility (CSR) norms.

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