19 Sick & Loss Making Central Public Sector Enterprises Have Been Approved For Closure By The Government
As per information available with Department of Public Enterprises (DPE), 19 sick & loss-making Central Public Sector Enterprises (CPSEs)/ units of CPSEs have been approved for closure by the Government. Out of these 19 CPSEs/ Units of CPSEs, the process of closure has been completed in respect of 2 CPSEs namely, Indian Oil-CREDA Biofuel Limited and HPCL-CREDA Biofuel Limited. The major reasons for closure of a CPSE would include continuous losses/ sub-optimal returns on equity invested by Government and inability to compete in competitive market.
CPSEs function under the administrative control of concerned Ministries/Department. As per the guidelines issued by DPE on 14.6.2018 ontime bound closure of sick/ loss making CPSEs and disposal of their movable and immovable assets, the concerned administrative Ministry/ Department/ CPSE undertakes the valuation and sale/ disposal of assets of CPSE under closure. Further, CPSEs which have been approved by the government for closure, take requisite steps including about the dues payable to their employees in consultation with their administrative Ministries/ Departments. The data on the valuation of assets for sale or information on statutory dues payable to the employees of the CPSEs under closure is available with concerned CPSEs/ Ministries.
In order to provide opportunities of self/ wage employment to the employees (or their dependents) of CPSEs separated under Voluntary Retirement Scheme (VRS)/ Voluntary Separation Scheme (VSS) due to closure/restructuring of CPSEs, DPE is implementing theCounseling, Retraining & Redeployment (CRR) Scheme. Further, the employees of CPSEs which are being closed are entitled to compensation as per VRS/ VSS guidelines of DPE.
During the period of existence of the erstwhile Board for Reconstruction of Public Sector Enterprises (BRPSE) i.e. from December 2004 to November 2015, 68 cases were referred to it by various administrative Ministries/ Departments of CPSEs. The Board had given recommendations on 64 cases and remitted 4 cases to the concerned Ministries/ Departments for resubmission. The BRPSE had recommended for revival in 58 cases and closure in 6 cases.
Subsequent to the winding up of BRPSE on 9th November 2015, DPE has issued guidelines dated 29.10.2015 on revival/ restructuring of CPSEs which are to be implemented by the concerned administrative ministries/ Departments in respect of the CPSEs functioning under them.
Central Public Sector Enterprises (CPSEs) function under the administrative control of their respective Ministries/Departments. The concerned administrative Ministry/ Department takes action relating to improving the performance and efficiency of CPSEs functioning under them which may include infusion of capital in CPSEs to enable them to remain as market intervention organizations in public interest.
This information was given by the Minister of Heavy Industries & Public Enterprises, ArvindGanpatSawant, in a written reply in the Lok Sabha today.