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.
most of the psus have become sick due to competition and change in technology.They can not be revived at all unless govt reverses the liberalisation policies.
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