Government issues guidelines for disposal of sick PSUs’ assets

By: |
New Delhi | Published: September 9, 2016 6:30:40 AM

To fast-track the closure of sick central public sector enterprises, the government on Thursday announced timelines for the disposal of their movable assets, sale of land and retrenchment of employees not opting for voluntary retirement scheme.

To fast-track the closure of sick central public sector enterprises (CPSEs), the government on Thursday announced timelines for the disposal of their movable assets, sale of land and retrenchment of employees not opting for voluntary retirement scheme (VRS).

According to Department of Public Enterprises (DPE) guidelines, the sick units will be closed within one year from the date of issue of minutes of the Cabinet approval; currently, the process drags on for years. In order to facilitate this, the settlement of statutory dues and payment to secured creditors will be completed within two months.

PSU

The employees not opting for voluntary retirement scheme will be retrenched within four months by completing all legal formalities. The disposal of movable assets will be completed within three months, while the disposal of land would take three to 15 months.

The speeding up of the closure of sick units will help in curbing recurring costs such as the salaries of employees, which constrain the Centre’s finances.

“The government would now like to ensure the decisions taken by the competent authority are implemented by ensuring payment of financial compensation, discharging of liabilities, legal responsibilities, disposal/monetisation of land and movable assets in a time-bound manner,” the DPE said. Land management and auctioning agencies will be entrusted with the job of disposing of movable and immovable assets.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition
FinancialExpress_1x1_Imp_Desktop