The union government is preparing a roadmap for identifying PSUs not capable of revival and for closing them down after giving benefit of VRS to its employees
The Indian government has started the process to revive five out of 11 sick public sector units (PSUs) and would form a joint venture of Maharatna PSUs to help revive the sick units, says Anant Geete, union minister for Heavy Industries and Public Enterprises.
Speaking about terminally ill PSUs, the minister said, "It would be better to make one-time settlement and eliminate even higher recurring expenditure."
Geete said, his ministry is preparing roadmap for identifying PSUs not capable of revival and for closing them down after giving benefit of voluntary retirement scheme (VRS) to its employees. "We are making a proposal for one-time settlement costing around Rs1,000 crore for employees of six PSUs that are not capable of revival," the minister added.
The functioning of the Board for Reconstruction of Public Sector Enterprises (BRPSE) has been reviewed, Geete said, adding that the government want to streamline multiple mechanisms for revival of sick central public sector enterprises (CPSEs) and have identified the action points in this regard.
The minister also said that there is a proposal to establish Ultra Mega Green Solar Power Park with an ultimate capacity of 4000 MW in Rajasthan.
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All these 6 units should, in the fitness of things, be revamped or merged with other good-working units in public/private sector, so that the infrastructure and other assets are put to optimum use, giving an opportunity for the employees to migrate to the new entities. Now GOI is going for the softer option of ‘getting rid of’ employees’ first, sale of movable assets next, followed by transfer of the most precious and valuable asset to private entities/individuals waiting to make easy money.
Even at this late hour, GOI should consider creating an umbrella organisation for PSUs to handle such situations, so that the trained workforce and the assets of units which become sick in certain circumstances can be deployed for serving public interest, If this is not done, this could turn out to be another scam of much greater dimension than 2G or coal, during the current decade.
M G Warrier, Mumbai