In line with recommendations of Expenditure Management Commission, the government is considering a proposal to liquidate some loss-making PSUs while protecting the interest of their employees who may be offered 'lucrative' payouts and having a win-win for both government and the staff. Accordingly, the government may provide for lucrative one-off sum toward pension payments for the staff of those loss identified loss making companies.
Expenditure Management Commission, formed in September 2014, recommended liquidating loss-making PSU by selling of assets such entities wherever possible. The commission was given the task to review all matters related to central government spending, including suggesting space for increased developmental spending and reviewing the budgeting process and norms under the Fiscal Responsibility and Budget Management Act and suggesting ways to meet a reasonable proportion of spending on services through user charges.
As per the latest government report, there are 77 loss- making PSUs at the end of March last year with a total aggregate loss of Rs 27,360 crore. For the current fiscal year, the government aims to collect Rs 56,500 crore through disinvestment in PSUs. Of the total budgeted proceeds, Rs 36,000 crore is estimated to come from minority stake sale in PSUs and the remaining Rs 20,500 crore from strategic sale in both profitable and loss-making companies.