GoM to review PSU autonomy plan

NEW DELHI The long wait of PSUs to get functional autonomy has been prolonged some more. The Union Cabinet on Thursday referred a proposal to empower companies to take decisions on joint ventures, divestment in subsidiaries and fresh float of equity, to a group of ministers (GoM).

The autonomy package, based on the recommendations of the Arjun Sengupta Committee given last year, will now be vetted by a GoM before being presented to the Cabinet for clearance. As per the proposal before the Cabinet, PSUs were supposed to be freed from frequent interference from administrative ministry and their functioning directly governed by Presidential directives.

The proposal also included empowering holding companies with Navratna status to transfer assets, float fresh equity and divest shareholdings in their subsidiaries, provided the PSUs remained profitable.

In other decisions, the Cabinet Committee on Economic Affairs (CCEA) has also approved a Rs 1,560 crore upgradation proposal under the Pradhan Mantri Swasthya Suraksha Yojna. The proposal includes upgradation of 11 medical institutions all over the country, to bring them at par with the AIIMS. The CCEA also sanctioned Block-B Opencast Project of the Northern Coalfields, a subsidiary of Coal India (CIL), for a coal production capacity of 3.5m tonnes per year. This would entail a capital investment of about Rs 764 crore.

Apart from these, the Union Cabinet also approved revision of the Prime Minister’s 15 Point Programme for the welfare of minorities. The programme includes enhancing education opportunities for the minority and prevention and control of communal riots. Also, it gave its nod to implement recommendations of the first judicial pay commission, as per the directives of the Supreme Court.