Centre to encourage staff bids for PSUs

NEW DELHI: The Disinvestment Ministry has prepared general guidelines to encourage employees of public sector undertakings to buy out the government’s holding in these corporations.
Disinvestment minister Arun Shourie said these guideline would be placed before the Cabinet Committee on Disinvestment (CCD) for approval. “The ministry felt it should have general guidelines which would encourage employees’ bids,� Mr Shourie said. “We have sent it to various ministries for their views and it will be going to the core group of secretaries on disinvestment (CGD) and then to the CCD.�
The proposal to introduce guidelines that would make employee buyout/management buyout (EBO/MBO) attractive has been under consideration since mid-. ET had reported last July that the government was considering the option of introducing the concept of “purchase preference� — popular with government departments for their purchases where PSU bidders are allowed to match the lowest quote — to encourage employees/officers association of PSUs.