Govt favours PSUs' dues clearance

NEW DELHI: A Group of Ministers has favoured the clearing of outstanding statutory dues, totalling Rs 2,000 crore, by profit-making public sector companies and also those who declare an operating surplus.
The GoM, headed by Planning Commission deputy chairman K C Pant, is of the view that the government will step in with capitalisation only in the cases of those PSUs which decide to close down or come out with a restructuring plan. This means that all the profit-making PSUs will have to settle the outstanding dues without any bailout package or grant from the government, sources said.
Sources said, a final decision would be taken at the next GoM meeting after which the proposal will be placed before the Cabinet for approval.
Bulk of the PSUs which have statutory dues outstandings are in the sectors of textiles, steel and coal. With the decision to deny any capital infusion to profit-making PSUs, the government would be left with a bill of Rs 1,400 crore for restructuring and closure plans of ailing companies.