A government-appointed committee has recommended formation of a company to revive sick CPSEs.
The Committee headed by NTPC Chairman Arup Roy Choudhury was to examine the possibility of formation of a joint venture company funded by seed equity from Maharatna and other cash-rich central public sector enterprises (CPSEs) to administer and manage sick state-run enterprises that can be revived.
"The Committee has submitted its report in October 2014. The report has given, inter alia, an analysis of sick CPSEs and recommended formation of a company to revive sick CPSEs," Union Heavy Industries & Public Enterprises Minister Anant Geete informed the Lok Sabha in a written reply.
Besides examining the feasibility of setting up of a separate company to nurse ailing PSUs back to health, the terms of reference of the Committee included identifying sources from which funds may be raised for the proposed entity as equity capital; and to recommend organisational structure of the proposed entity and its interface with the Ministries.
Based on the recommendations of the Board for Reconstruction of Public Sector Enterprises (BRPSE), revival of 48 CPSEs and closure of 4 CPSEs have been approved till October 31, 2014 envisaging total fund/non-fund based assistance of Rs 41,139 crore (cash assistance of Rs 11,135 crore and non-cash assistance of Rs 30,004 crore).
