New Delhi: The government has launched a new public sector company policy for nonstrategic sectors so that the Public Business Department (DPE) can encourage the privatization or closure of the state-run company.
In cases where the “very high” obligation, the government has indicated its willingness to go for the Bangkred Code (IBC) Cuprits & Bank route.
The norm stipulates that the entire closing process must be completed within nine months after approval by the Cabinet Committee on economic affairs (CCEA).
This step, which follows the policy statement in the non-core sector by Minister of Finance Nirmala Sitharaman in the final budget, will be implemented for PSU in sectors other than atomic energy, space, defense, transportation, telecommunications, energy & minerals and financial services.
The policy clearly states that in cases where a PSU director or head failed to work together, the government will have the right to replace it with a joint secretary rank of the department concerned, in what is seen as a clear message to brass falling in line.
The release of the policy coincides with the protest of the government’s plan to privatize the banks managed by the government, showing that the center does not seem interested in succumbing to succumb.
The plan will be useful for several companies whose governments have been proposed to sell but have not been able to find buyers over the past few years.
The DPE has been entrusted by preparing a list of companies to be taken for closure and disinvest in consultation with the Ministry of Administration, Niti Aayog, Depam and Expenditure Department.
It will also encourage the process of closing after the CCEA cleans it, which will cover the extent to which the receivables and budget support needed to cleanse laws and other contributions, including them to employees.
PSUS with high liabilities may face IBC-based closure
