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19 sick CPSEs set to be closed

ANI 

The government has approved the closure of 19 sick and loss-making Central Public Sector Enterprises (CPSEs) or units of CPSEs, the Lok Sabha was informed on Tuesday.

"As per information available with the Department of Public Enterprises (DPE), 19 sick and loss-making CPSEs or units of CPSEs have been approved for closure by the government," said Minister of Heavy Industries and Public Enterprises Arvind Ganpat Sawant in a written reply in the Lower House of Parliament.

Out of these 19 CPSEs or units of CPSEs, the process of closure has been completed in respect of two CPSEs, namely, Indian Oil-CREDA Biofuel Limited and HPCL-CREDA Biofuel Limited, said the minister.

As per the guidelines issued by DPE on 14.6.2018 on time-bound closure of sick or loss-making CPSEs and disposal of their movable and immovable assets, the concerned administrative Ministry, Department, CPSE undertakes the valuation and sale or disposal of assets of CPSE under closure.

The minister said that in order to provide opportunities of self/wage employment to the employees or their dependents of CPSEs separated under Voluntary Retirement Scheme (VRS)/ Voluntary Separation Scheme (VSS) due to closure/restructuring of CPSEs, DPE is implementing the Counseling, Retraining and Redeployment (CRR) Scheme.

During the period of existence of the erstwhile Board for Reconstruction of Public Sector Enterprises (BRPSE), that is, from December 2004 to November 2015, 68 cases were referred to it by various administrative Ministries and Departments of CPSEs. The Board had given recommendations on 64 cases and remitted four cases to the concerned Ministries and Departments for resubmission.

As per the Public Enterprise Survey (PES), which is laid every year in both the Houses of the Parliament by the DPE, certain statutory corporations and all government companies in which more than 50 pc equity is held by the Central government are classified as the CPSEs.

The subsidiaries of these companies in which any CPSE has more than 50 per cent equity are also categorised as CPSEs, if registered in India. There are 339 CPSEs as on 31.03.2018, out of which 257 are operating CPSEs and 82 are under construction.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, July 02 2019. 19:36 IST
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