Govt preparing guideline for sale of sick PSUs asset

Following NITI Aayog’s recommendation, government is now preparing a detailed guideline for sale of fixed assets such as land, building, machinery held by 26 sick and loss-making Public Sector Undertakings (PSUs) that are likely to be considered for shutdown. Specific guidelines in this regard will be issued by the Department of Public Enterprises and assets of the loss-making PSUs would be sold through e-auction.

These lands of sick PSUs being considered for closure are either on lease or freehold with central public sector enterprises (CPSEs). If the land is on lease, the lessee will decide its fate, but if it is freehold, the CPSE would have to first approach the respective state government for using it for public purpose.

There are 74 loss-making and sick PSUs identified by the NITI Aayog. Of these, 26 have been recommended for closure, five are on lease - which can be either given to the private sector or state governments which mostly include hotels.  Of the remaining, three PSUs need to be merged with their parent companies.  The government aims to collect Rs 56,500 crore through disinvestment in PSUs this fiscal, as per the Union budget for 2016-17. 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.