A high-powered committee, headed by Cabinet secretary Ajit Kumar Seth, may take a final call this month on the proposed new norms to provide greater operational flexibility to PSUs in achieving their annual targets. The department of public enterprises (DPE) has prepared the draft memorandum of understanding (MoU) norms, based on the recommendations of a working group on MoU norms for the Central Public Sector Enterprises (CPSEs), headed by P G Mankad. ?The proposed MoU norms are ready. The HPC is expected to meet this month and finalise these norms,? said DPE secretary OP Rawat. The MoUs are signed between the CPSEs and their administrative departments and facilitated by the DPE.

CAG says 20 PSUs paid R414 crore in irregular leave encashment

About 20 central PSUs, made irregular payments of about R414 crore to employees towards leave encashment, the CAG has said. ?Encashment of half-pay leave/sick leave in deviation from DPE guidelines resulted in irregular payment of R413.98 crore from January 2007 to November 2012,? the Comptroller and Auditor General (CAG) of India said in a report tabled in Parliament. With effect from January 1, 2006, the government allowed encashment of half-pay leave and earned leave on superannuation, subject to a combined limit of 300 days. The auditor observed that about 17 central public sector enterprises made irregular payments of R391.31 crore to their employees towards half-pay leave encashment on superannuation over and above the ceiling of 300 days.

Bihar Drugs among six CPSEs closed in last five years, Patel

The government last week said six Central Public Sector Enterprises (CPSEs), including Indian Oil Technologies and Bihar Drugs, have been closed down in the last five years. ?Six CPSEs have been closed in the country in the last five years,? minister of heavy industries and public enterprises Praful Patel said to the Rajya Sabha. Other companies are Organic Chemicals, Brushware Ltd, Pyrites Phosphastes and Chemicals, National Instruments and Bharat Yantra Nigam, he added.

GAIL India plans to sell part of stake in China Gas Holdings

GAIL India Ltd plans to sell part of its 4.6% stake in Hong Kong-listed city gas distribution firm China Gas Holdings. GAIL, which made a strategic investment of R137 crore by acquiring 210 million shares of China Gas in 2005, will sell a part of the holding, minister of state for petroleum and natural gas Panabaaka Lakshmi told the Rajya Sabha last week. The gas utility plans to keep a small strategic interest in the company that will help it retain its board position in China Gas, the minister said.

Govt to create SNIF to help sick PSUs comply with Sebi norms

The government has approved setting up of Special National Investment Fund (SNIF) to help six sick PSUs, including HMT, ITI and Scooters India, to make them compliant with the 10% minimum public holding norm of market regulator Sebi. The SNIF would be maintained outside the Consolidated Fund of India and will be managed by independent professional fund managers, to be appointed. The Cabinet committee on economic affairs had this month approved setting up of SNIF, Information and broadcasting minister Manish Tewari said.

Govt sells stake in Neyveli, STC, ITDC; raises R395 crore

In a boost to the government?s disinvestment programme, stake sale offers in Neyveli Lignite, STC and ITDC got fully subscribed last week garnering R395 crore for the exchequer . The 3.56% stake sale in Neyveli Lignite Corporation (NLC) fetched R360 crore to the exchequer with all of the shares being picked up by five Tamil Nadu government firms. Besides, the sale of 5% stake, or 42.88 lakh shares, in ITDC fetched over R30 crore. Another R4.54 crore came in from STC disinvestment of 1.02%, or 6.13 lakh shares. The stake sale would now make the three PSUs compliant to the minimum 10% public holding norm of market regulator Sebi.

Post-stake sale, government?s holding in the PSUs has come down to 90%.