'Evolve PSU assets disposal policy'
A Parliamentary committee has asked the government to formulate a common policy for disposal of surplus assets of central public sector enterprises to maximise returns.
By PTI |
NEW DELHI: A Parliamentary committee has asked the government to formulate a common policy for disposal of surplus assets of central public sector enterprises to maximise returns.
With disposal of assets emerging as one of the favoured means to raise funds for the revival of under performing PSUs, the Standing Committee on Industry has said that CPSEs, as commercial enterprises, must be encouraged to generate their finances through internal resources.
So far in cases of revival of 11 PSUs, the disposal of surplus assets has been been identified as one of the ways to finance their revival.
In his presentation before the committee, Secretary in the Department of Heavy Industries stated that the government considered unlocking of assets of central PSUs as a vital source of financing their revival.
The committee appreciated the efforts of HMT Ltd and its subsidiaries to raise large funds internally for their revival.
HMT Machine Tools has identified land worth Rs 470 crore in Bangalore and Ajmer for disposal, which will help the company part finance its Rs 735 crore plan to return to health.
While in case of holding company HMT Ltd, Rs 726 could be realised from sale of assets while in case of HMT Watches Rs 264 crore can be raised to finance their revival.
In all, six companies of HMT had asked for Rs 1,743.69 crore for revival. The plan for HMT Bearings and Praga Tools have already got approval of the Cabinet, while restructuring of HMT
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