1. Govt to issue guidelines soon for asset sale of sick PSUs

Govt to issue guidelines soon for asset sale of sick PSUs

The NITI Aayog has identified 74 loss-making PSUs. Of these, 26 have been recommended for closure

By: | New Delhi | Updated: September 8, 2016 7:34 AM
The NITI Aayog, the nodal department to identify PSUs for strategic sale, has already submitted several reports. The NITI Aayog, the nodal department to identify PSUs for strategic sale, has already submitted several reports.

The government will soon issue guidelines for the disposal of land and other assets of 26 sick/loss-making PSUs that are likely to be closed, a senior official said on Wednesday.

“Specific guidelines in this regard will be issued by the Department of Public Enterprises,” the official said. Assets like building, plants and machinery of the loss-making PSUs would be sold through e-auction. In the case of free-hold land, state governments will be offered to buy it at the prevailing market price, the official added. The NITI Aayog has identified 74 loss-making PSUs. Of these, 26 have been recommended for closure. The official said 22 PSUs, including Air India, for which revival package are under implementation, could continue to get government financial assistance. The NITI Aayog has also recommended the merger of three sick firms with their parent companies.

The NITI Aayog, the nodal department to identify PSUs for strategic sale, has already submitted several reports.

The first report had identified 74 sick and loss-making companies for action, while two reports have recommended strategic disinvestment in about 44 companies.

The government aims to raise R36,000 crore of revenue from minority stake sales in PSUs in 2016-17. Another R20,500 crore will be raised from strategic stake sales in PSUs.

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