Once the Prime Minister's Office (PMO) gives...
the in- principle approval to the proposal, the ministry responsible for administration of these PSUs will prepare detailed plan for closure of these firms, the source said.
The detailed plan will include identification of assets to be liquidated and the compensation for employees of these firms.
These closure plans will be placed before Union Cabinet for approval to start the process of liquidating the firms.
Earlier, Niti Aayog was asked by the PMO to identify one sick PSU, along with a detailed plan for its sell-off or eventual liquidation, before moving on to other such cases. The Aayog had submitted two separate lists of sick and loss-making PSUs - one comprising those that can be closed down and the other of those where government can divest its stake.
It is also in the process of preparing a list of PSUs for strategic sale or privatisation.
It had raised around Rs 24,500 crore in 2014-15 by selling stake in public companies, about Rs 16,000 crore in 2013-14 and Rs 23,960 crore in 2012-13.
Earlier, NITI Aayog had identified 32 loss-making companies for strategic disinvestment, including central public sector enterprises (CPSEs) such as Bharat Pumps & Compressors, Tyre Corporation of India, Central Inland Water Transport Corporation and Bengal Chemicals & Pharmaceuticals, among others. Of the 32 companies, 10 could see strategic disinvestment right away while for the other 22 the suggestion is to revive while retaining a subsequent option for strategic disinvestment, say media reports. Of the total 74 loss-making companies 26 have been identified for closure or winding up, five for long-term lease or management contract, three have been proposed to be merged with the parent company while two have been identified for maintaining status quo.
Earlier, NITI Aayog has submitted to the Prime Minister's Office a roadmap for closure and strategic sale of government stake in some public sector units.
Finance Minister Arun Jaitley had said in his Budget 2016-17 speech that NITI Aayog will identify PSUs for strategic sale. Under the roadmap, the Aayog dealt with two sets of issues -- one pertains to decision regarding sick firms which have been making losses, while the second is disinvestment, or strategic sale where government wants to reduce its stake. Government has set a disinvestment target of Rs 56,500 crore for this fiscal. Of this, Rs 36,000 crore is to come from minority stake sale in PSUs and Rs 20,500 crore from strategic sale.