To ensure timely closure of sick and loss-making central public sector enterprises (CPSEs), the department of public enterprises (DPE) is formulating revised guidelines for a simplified and flexible mechanism for closure of such CPSEs in a time-bound manner. The closure process will be monitored by an empowered group of secretaries, the DPE said on Thursday.
The focus of the revised guidelines would be on delinking the process of closure of CPSE from disposal of its immovable assets to avoid any delay in closure of these sick/loss-making CPSEs, which are a drag on the exchequer. Currently, there are 21 sick/loss-making CPSEs which have received the Cabinet nod for closure. These units have been unable to attain closure due to various reasons, including delay in disposal of immovable assets.
The revised guidelines will enable the administrative ministries to take steps for monetisation of land of these CPSEs for setting up of industrial clusters or any other such purpose. The new policy will also facilitate in fulfilling the objective of the new strategic sector policy which envisages closure of CPSEs wherever required. In the budget for FY22, finance minister Nirmala Sitharaman announced the new strategic sector policy as well as the plan to revise the guidelines for closure of sick units.