Loss-making Psus

Tasked by the Prime Minister's Office to look into viability of sick state-run companies, government think-tank Niti Aayog has identified eight PSUs for closure after finding them unfit for revival.

The government is considering a proposal to relax the Employees' Provident Fund Scheme to enable loss-making and sick PSUs to continue with their own PF Trusts, Parliament was informed on Tuesday.

As it looks to contain public expenditure, the government is considering a proposal to liquidate some loss-making public sector undertakings (PSUs) while protecting the interest of their employees who may be offered "lucrative" payouts.

The office of Prime Minister Narendra Modi has stepped into the process of divestment, calling for a clear roadmap for 58 loss-making Public Sector Enterprises. It has been decided to close five of these units immediately, 11 will stop getting non-budgetary support.

The government will go ahead with its disinvestment programme and "a lot of activity" is expected on that front, Finance Minister Arun Jaitley said, while hinting at complete privatisation of some loss-making PSUs at a later stage.

At present, there are seven loss-making public sector undertakings -- Scooters India, HMT, Andrew Yule, State Trading Corporation, ITI Ltd, Fertilisers and Chemicals Travancore and Hindustan Photofilms - in which the government has to bring down its stake to 90 per cent.

Tasked by the Prime Minister's Office to look into viability of sick state-run companies, government think-tank Niti Aayog has identified eight PSUs for closure after finding them unfit for revival.

The government is considering a proposal to relax the Employees' Provident Fund Scheme to enable loss-making and sick PSUs to continue with their own PF Trusts, Parliament was informed on Tuesday.

As it looks to contain public expenditure, the government is considering a proposal to liquidate some loss-making public sector undertakings (PSUs) while protecting the interest of their employees who may be offered "lucrative" payouts.

The office of Prime Minister Narendra Modi has stepped into the process of divestment, calling for a clear roadmap for 58 loss-making Public Sector Enterprises. It has been decided to close five of these units immediately, 11 will stop getting non-budgetary support.

The government will go ahead with its disinvestment programme and "a lot of activity" is expected on that front, Finance Minister Arun Jaitley said, while hinting at complete privatisation of some loss-making PSUs at a later stage.

At present, there are seven loss-making public sector undertakings -- Scooters India, HMT, Andrew Yule, State Trading Corporation, ITI Ltd, Fertilisers and Chemicals Travancore and Hindustan Photofilms - in which the government has to bring down its stake to 90 per cent.