Closure of Sick PSUs
Central Public Sector Enterprises (CPSEs) function under the administrative control of various Ministries/Departments and all matters relating to CPSEs including closure are dealt by the concerned administrative Ministries/ Departments. The reasons for closure vary from CPSE to CPSE which include persistent losses, resources crunch, low productivity, unsustainable business operations, old and obsolete plant & machinery, outdated technology, low capacity utilization, poor debt–equity structure, excess manpower, weak marketing strategies, stiff competition, lack of business plans, heavy interest burden, high input cost, etc.
Department of Public Enterprises (DPE), as a nodal department, has issued guidelines on 07.09.2016 for “time bound closure of sick/ loss making CPSEs and disposal of movable and immovable assets”. As per the guidelines, the concerned administrative Ministries /Departments are responsible for formulation and implementation of closure plans and NITI Aayog carries out monitoring the implementation of the decision of closure.
The Counselling, Retraining & Redeployment (CRR) Scheme of the Government provides opportunities of self/wage employment to the employees or their dependents separated under Voluntary Retirement Scheme (VRS)/ Voluntary Separation Scheme (VSS) or retrenched due to closure/restructuring of the CPSEs. The Scheme aims at providing short duration skill development/ entrepreneurship development training programmes to equip the beneficiaries for self/ wage employment.
This information was given by Minister of State in the Ministry of Heavy Industries and Public Enterprises Shri Babul Supriyo in reply to a written question in the Rajya Sabha today.
