THE Centre has set the stage for the closure of 17 sick public sector units (PSUs), of which four are already under liquidation. Reports say the Prime Minister's Office (PMO) has approved the closing down and a Cabinet note on the formal closure of the PSUs was being prepared. The land these PSUs will be...sold. Lease-held land will have to be disposed of in keeping with the terms of the lease agreements.
The NITI Aayog, tasked with preparing a roadmap for ailing PSUs, had submitted two separate lists of ailing and loss-making PSUs — one comprising those that can be closed down and the other of those where government can divest its stake.
Out of 74, the Aayog had suggested status quo in case of two PSUs, strategic disinvestment of 10, plan for revival with option for strategic disinvestment for 22, transfer of ownership of six, merger of three, long term lease of five and closure of 26.
Shutting down these sick PSUs is part of a strategy to deal with beleaguered government-owned companies. Revival of rest of the sick PSUs and strategic sales in six of them could also be considered.
The 17 sick PSUs include Tungabhadra Steel Products, under the ministry of heavy industries; STCL Ltd (formerly Spice Trading Corporation of India), under the ministry of commerce and industries; Central Inland Water Transport Corporation, under the ministry of shipping; and Hindustan Photo Films and Manufacturing Corporation, under the ministry of heavy industries. The other ailing PSUs include Bharat Wagons and Engineering, under the ministry of railways; Bharat Jute, under the ministry of textiles; CREDA (HPCL) Biofuels Ltd, under the ministry of Petroleum; Hindustan Cables Ltd, under the ministry of heavy industries. For Hindustan Organic Chemicals Ltd (under the ministry of chemicals and fertiliser), officials said the plan was to close nine out of the 14 plants and continue operating the rest. PSUs under liquidation that have been listed for closure are Triveni Structurals Ltd, Tyre Corporation, Hindustan Vegetable Oils Corporation and the Ooty-based Hindustan Photo films Manufacturing Corporation.
Here is a complete list of sick PSUs facing closure
Tungabhadra Steel Products
STCL Ltd (Formerly Spice Trading Corporation of India)
Central Inland Water Transport Corporation
Bharat Wagons and Engineering
Hindustan Organic Chemicals (nine out of 14 plants to be closed)
Hindustan Vegetable Oil Corporation
HMT Chinar Watches
Indian Oil-CREDA Biofuels
National Jute Manufactures Corporation
Tyre Corporation of India
Hindustan Photo Films Manufacturing.