Government think-tank NITI Aayog is preparing a fresh cabinet note recommending closure of 7 more sick CPSEs as part of an excercise to tackle mounting losses incurred by these entities. “Cabinet note is being prepared for closure of 7 more sick CPSEs,” a senior government official told PTI.
The Aayog, tasked with preparing a roadmap for ailing public sector undertakings, had earlier identified 26 sick central public sector enterprises (CPSEs) for closure, of which 7 received cabinet nod. These include Hindustan Cable, Tyre Corporation, HMT Watches, Birds Jute and Export Limited (BJEL) and Central Inland Water Transport Corporation.
The fresh list, the official said, would be in addition to the CPSEs which were approved for closure by Cabinet Committee on Economic Affairs (CCEA). The official said the Aayog has also identified five CPSEs which can neither be revived nor sold, for liquidation. He further said the Aayog, in a third tranche, has identified 12 more CPSEs for strategic sale.
Companies identified in the third tranche include National Textile Corporation, Hindustan Antibiotics, Scooters India and Hindustan Flurocarbons. Last year, the NITI Aayog in two tranches had recommended strategic sale of 15 CPSEs, three units of SAIL and one unit of National Mineral Development Corporation (NMDC).
For the next financial year, the government has budgeted to raise Rs 72,500 crore through disinvestment in CPSEs, of which Rs 15,000 crore is to come from strategic sale.
The government, in the current fiscal year, expects to raise close to Rs 45,500 crore from its disinvestment programme but so far has raised about Rs 30,000 crore through minority share sale by way of offer for sale (OFS), share buyback and CPSE ETF (exchange traded fund).