NITI Aayog has identify eight sick unit out of 74 loss-making public sector unit (PSUs) and suggested government for closure or sell-off, after finding them unfit for revival. Once the Prime Minister’s Office (PMO) gives the in-principle approval to the proposal, the ministry responsible for administration of these PSUs will make detail plan for closer of these units. The detailed plan will include identification of assets to be liquidated and the compensation for employees of these eight companies.
Earlier, PMO had asked the Niti Aayog to identify one sick PSU, along with a detailed plan for its sell-off or eventual liquidation, before moving on to other such cases. The Aayog had submitted two separate lists of sick and loss-making PSUs- one comprising those that can be closed down and the other of those where government can divest its stake. The government aims to collect Rs. 56,500 crore through disinvestment in PSUs this fiscal. 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 profit and loss-making companies.