Government plans to wind up some sick PSUs: Anant Geete

NEW DELHI: The government is looking to wind up some sick public sector enterprises, minister of heavy industries and public enterprises Anant Geete said on Friday. "We are also thinking about closing down two more units, including a unit of HMT and Tyre Corporation of India Ltd. We are discussing these proposals," Geete said.

The minister made it clear that the government has no plans for divestment of loss-making central public sector enterprises.

"We are not going in for disinvestment of any (loss-making CPSEs). Some were approved for closure earlier. We have prepared individual proposals for them," said Geete. There are no plans to set up a land bank using surplus land of CPSEs either, he said.

The government has already circulated cabinet notes on closure of four CPSEs including three units of HMT and Tungabhadra Steel Products, while discussions are on with the defence ministry on Hindustan Cables.

The government, which recently shut down BRPSE, an agency for revival and closure of loss making enterprises, has come up with new guidelines on restructuring of loss-making firms. Administrative ministries have been directed to classify their firms as weak, sick or incipient sick.

Accordingly, ministries will put in place a restructuring plan which may include divestment, privatisation or closure options for sick and incipient sick firms.

On the issue of framing a national capital goods policy, Geete said that it will be finalised within one-two months and sent to the cabinet for approval.