Cabinet approves revised norms for time-bound closure of sick PSUs

New Delhi: The Union Cabinet, chaired by PM Narendra Modi on Wednesday approved revised guidelines on time bound closure of sick and loss making central public sector enterprises and disposal of their 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,” an official statement said.

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,” the statement said.

The guidelines also provide for advance preparatory action to be taken by administrative ministry or department and CPSEs, preparation of closure proposal, settlement of statutory and other liabilities of the CPSE and modalities for disposal of movable and immovable assets of such CPSEs in a time bound manner.

The guidelines shall apply to all sick and loss making CPSEs where approval or in principle approval for closure has been obtained by the administrative ministry or department from the Cabinet Committee of Economic Affairs or Cabinet; or the process for obtaining the approval of the competent authority is underway after the administrative ministry or department has decided for the closure of the CPSE.