IT seems Narendra Modi government is finally giving some serious thought about reviving the ailing PSUs. After announcing its decision to shut down five terminally ailing PSUs last year, now the NDA government is planning to set up a finance corporation to utilise around Rs 2-lakh-crore surplus cash of state-owned enterprises lying idle in banks.
The funds may be...used for purposes such as reviving sick PSUs and investment in infrastructure projects.
There are 70 ailing PSUs and the government believes 43 out of these can be revived.
"We are thinking of setting up a finance corporation to utilise the surplus cash with PSUs," Union heavy industry and public enterprises minister Anant Geete said.
The minister also said a couple of meetings had been held to discuss the proposal. Although the name and structure of the body have not been finalised , it is being referred to as finance corporation as of now.
The entity may be a joint venture company funded by seed equity from maharatna and other cash-rich central public sector enterprises to administer and manage sick state-run enterprises that can be revived.
Earlier, a committee headed by NTPC chairman Arup Roy Choudhury was constituted last year to examine the proposal of setting up the company.The panel was also assigned the task of identifying sources from which funds may be raised for the proposed entity as equity capital; and to recommend its organisational structure and interface with the ministries.