|Union minister Geete|
ruled out any divestment in sick CPSEs. Recently, minister for heavy industries and public enterprises Anant Geete said that TCIL and a unit of HMT were being considered for closure. However, he did not divulge which unit of HMT was being considered for closure. The minister also said the government had no plans to set up a land bank using surplus land of PSUs.
Geete also said that the ministry would not be going for disinvestment of other such loss-making PSUs. He added individual proposals would be prepared for those that were approved for closure earlier.
Interestingly, TCIL is one of the PSUs that had earlier been cleared for revival through a joint venture (JV) or disinvestment. Based in West Bengal, the PSU entity reported a net loss of more than Rs 20 crore in 2011-12.
The Cabinet had earlier given in-principle nod to shut down five ailing CPSEs — including HMT Bearings, HMT Watches, HMT Chinar Watches, Tungabhadra Steel Products and Hindustan Cables. The heavy industries ministry has now firmed up individual proposals and will again approach the Cabinet for a final nod.
The government has proposed a long-term rationalised tax and duty structure to promote the capital goods sector to realise the Prime Minister's Make in India initiative.
A National Capital Goods Policy was formulated to increase the share of capital goods contribution to 20 per cent of total manufacturing activity by 2025, from 12 per cent, said the draft policy released by the Department of Heavy Industries.
Earlier, the Prime Minister’s Office (PMO) has stepped into the process of divestment, wanting a clear roadmap for 58 loss-making Public Sector Enterprises. The Centre has already decided to close five of these units immediately, 11 will stop getting non-budgetary support. The PMO has asked the cabinet secretary to get an action plan ready for either the revival or the closure of the rest within a month.
The cabinet secretary has moved a note asking the department of disinvestment (DoD) to become the nodal ministry and take control over the entire process of overseeing the revival or closure of the sick PSUs.