Niti Aayog has identified eight PSUs for closure after finding them unfit for revival. “These eight units are out of 74 loss-making public sector undertakings identified by the Niti Aayog for closure or sell off,” said a source privy to the development.
Once the Prime Minister’s Office (PMO) gives the in- principle approval to the proposal, the ministry responsible for the administration of these PSUs will prepare detailed plan for closure of these firms, the source said.
The detailed plan will include identification of assets to be liquidated and the compensation for employees of these firms. These closure plans will be placed before the Union Cabinet for approval to start the process of liquidating the firms.
Earlier, Niti Aayog was asked by the PMO to identify one sick PSU, along with a detailed plan for its sell-off or eventual liquidation, before moving on to other such cases.
The Aayog had submitted two separate lists of sick and loss-making PSUs – one comprising those that can be closed down and the other of those where the government can divest its stake.
It is also in the process of preparing a list of PSUs for strategic sale or privatisation.