To tackle the issue of inordinate delay in closing down sick or loss making central public sector enterprises (CPSEs), the government has come out with timelines for disposal of movable assets, sale of land and retrenchment of employees not opting for voluntary retirement scheme (VRS). The decision for closure of such CPSEs was taken a long time back.
Issuing the guidelines, the Department of Public Enterprises (DPE) said that 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 of land and movable assets in a time-bound manner. It said that land management and auctioning agencies will be entrusted with the job to dispose of movable and immovable assets.
As per the timelines laid down by DPE, the retrenchment of employees of such CPSEs who have not opted for VRS has to be completed within four months from the 'Zero Date', the date of issue of minutes of approval for closure of sick or loss-making CPSEs by the Cabinet or Cabinet Committee of Economic Affairs. The VRS package will be as per the 2007 notional pay scale. Further, settlement of statutory dues and liabilities towards revenue and tax department has to be completed within three months, while payment to secured creditors has to be done in two months. The sale of leasehold or freehold land needs to be complete within six months. Government's premier think-tank Niti Aayog has identified 74 loss-making public sector undertakings, of these 26 have been recommended for closure.
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