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Set aside divestment proceeds for sick PSUs revival: Parliament panel

The government has set a target of raising Rs 800 bn in 2018-19 by selling stake in state-owned firms, with strategic divestment of 24 CPSEs on the cards

Press Trust of India  |  New Delhi 

PSUs

A parliamentary panel has recommended earmarking of a defined portion of proceeds from divestment of state-owned enterprises for funding revival, restructuring and modernisation proposals of that have the potential to turn around.

"In this manner, the government can extend a hand-holding support to the select that have the potential to turn around and sustain themselves in future," the panel said in a report.

The government has set a target of raising Rs 800 billion in 2018-19 by selling stake in state-owned firms, with strategic divestment of 24 on the cards, and privatisation of on track.

Besides, NITI Aayog is preparing another list of that can be privatised, its said last month.

The Prime Minister's Office (PMO) had asked the think-tank to look into the viability of sick state-run companies. The Aayog has already recommended strategic divestment of 40 sick

In its report, the Parliamentary Standing Committee on Industry said it is of the firm opinion that while making a decision to disinvest PSUs, especially those that are profit making, the government must accord due consideration to the jobs supported by them, the track record of their contribution to the national economy, their CAPEX (capital expenditure) creation potential and also their role in balancing the social/regional fabric.

The committee observed that timely approval of revival/restructuring/modernisation plans of CPSEs, with accurate cost estimates, availability of funds with the Government and the timely disposal of such funds are crucial factors.

First Published: Mon, March 26 2018. 00:04 IST
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