The Union Cabinet, headed by Prime Minister Narendra Modi has approved the department of public enterprises’ (DPE) revised guidelines for time-bound closure and disposal of movable and immovable assets of sick or loss making Central public sector Enterprises (CPSEs). The new norms give utmost priority to utilisation of available land parcels of CPSEs under closure for affordable housing as per the relevant guidelines of the Ministry of Housing and Urban Affairs (MoHUA).
The revised guidelines would reduce delays in implementation of closure plans of sick/loss making CPSEs. It will replace the old guidelines issued by DPE in September, 2016. Besides, these guidelines provide a broad framework for expeditious completion of various processes and procedures for closure of CPSEs by laying down important milestones in the closure process along with time-lines, outlining the responsibilities of the concerned Ministries/ Departments/ CPSE, etc, in the process.
The guidelines also provide for advance preparatory action to be taken by administrative ministry or department and CPSEs, preparation of closure proposal, settlement of statutory and other liabilities of the CPSE and modalities for disposal of movable and immovable assets of such CPSEs in a time bound manner.