Cabinet approves Revised guidelines on time bound closure of sick/loss making CPSEs and disposal of movable and immovable assets

Cabinet approves Revised guidelines on time bound closure of sick/loss making CPSEs and disposal of movable and immovable assets

The Union Cabinet chaired by Prime Minister Shri Narendra Modi today has approved the revised guidelines of the Department of Public Enterprises (DPE) on time bound closure of sick/ loss making Central Public Sector Enterprises (CPSEs) and disposal of movable and immovable assets. The revised guidelines would reduce delays in implementation of closure plans of sick/loss making CPSEs.  These guidelines will replace the guidelines issued by DPE in September, 2016.

These guidelines provide a broad framework for expeditious completion of various processes and procedures for closure of CPSEs by laying down important milestones in the closure process along with timelines, outlining the responsibilities of the concerned Ministries/ Departments/ CPSE, etc., in the process. The guidelines provide for advance preparatory action to be taken by administrative Ministry/ Department and CPSEs, preparation of closure proposal, settlement of statutory and other liabilities of the CPSE under closure and modalities for disposal of movable and immovable assets of such CPSEs in a time bound manner.

The guidelines give first priority for utilization of land of CPSEs under closure for Affordable Housing as per the relevant guidelines of Ministry of Housing and Urban Affairs (MoHUA). Since there are employees working in these CPSEs, Government decided that closure should not cause hardship to them and has now laid down a uniform policy to give workers VRS at 2007 notional pay scale irrespective of the pay scale in which they are working.

These guidelines shall apply to all sick/ loss making CPSEs, where –

1. Approval/ in principle approval for closure has been obtained by administrative Ministry/ Department from the CCEA/ Cabinet; or

2. the process for obtaining the approval of the competent authority is underway after the administrative Ministry/ Department has decided for the closure of the CPSE.

By assigning priority to Affordable Housing it would make available land parcels of sick/loss making CPSEs under closure for the Government flagship programme of Affordable Housing being managed by Ministry of Housing and Urban Affairs.

Source: PMINDIA