Doom's day set for 7 PSUs by Centre

In its privatisation initiative and acting on the NITI Aayog recommendation, the Government of India is all set to seek the cabinet's approval for shutting down selected seven state owned companies.

According to media reports the respective line ministries have reached a consensus as regards the selling off of the selected seven state owned companies.

It will be a history of sorts, since this is the first time that any government has sought approvals for closure of seven state owned companies in one go. This initiative is expected to kick off the closure of a large list of 74 loss making state owned units. The list of state owned companies to be shut may include Bird Jute and Exports, Hindustan Papers, Hindustan Photo Films, Tyre Corporation and Richardson & Cruddas. 

According to media reports, NITI Aayog had previously identified 8 such PSU entities for shutting down, however one of the eight identified companies is now deemed to be fit for revival and only seven of the eight identified PSU companies will be shut down. The relevant ministries will now prepare a detailed plan for closure which will include identification of assets to be liquidated and the compensation for employees. 

The government has set its eyes on collecting Rs 56,500 crores through divestment in PSUs this financial year.