1. Govt to release norms for asset sale of closed PSUs soon

Govt to release norms for asset sale of closed PSUs soon

"When a company is going to close down a particular unit assets have to be disposed of. Specific guidelines are under issue by the Department of Public Enterprises," a senior government official said.

By: | New Delhi | Updated: September 7, 2016 9:02 PM
Finance Minister Arun Jaitley in his Budget 2016-17 speech had said the Aayog would identify PSUs for strategic sale and disinvestment.  (AP) Finance Minister Arun Jaitley in his Budget 2016-17 speech had said the Aayog would identify PSUs for strategic sale and disinvestment.
(AP)

Government will soon come out with detailed guidelines for disposal of land and other assets of state-owned sick and loss making companies which are being considered for closure.

“When a company is going to close down a particular unit assets have to be disposed of. Specific guidelines are under issue by the Department of Public Enterprises,” a senior government official said.

Assets like building, plant and machinery of sick Central Public Sector Enterprises (CPSEs) would be sold through e-auction.

In case of free-hold land, the state governments will be offered to buy it at the prevailing market price, the official said.

“If it is a free-hold land in the name of the company, they have to first approach the state government which may purchase the land for public purpose. But the price of that should be the present day acquisition cost,” the official added.

Government think-tank Niti Aayog has identified 74 loss-making public sector undertakings. Of these, the official said 26 have been recommended for closure.

The official further said 22 CPSEs, for which revival package are being implemented, should continue to get the government financial help.

Niti Aayog has recommended merger of three sick and loss-making firms with the parent companies.

Prime Minister’s Office has asked Niti Aayog to look into viability of sick state-run companies.

Finance Minister Arun Jaitley in his Budget 2016-17 speech had said the Aayog would identify PSUs for strategic sale and disinvestment.

The government aims to collect Rs 56,500 crore through disinvestment in PSUs this fiscal, as per the Union budget for 2016-17.

Of the total budgeted proceeds, Rs 36,000 crore is estimated to come from minority stake sale in PSUs and the remaining Rs 20,500 crore from strategic sale in both profit and loss-making companies.

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