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GoM Asks Ministry To Bypass BIFR For Closure Of Sick PSUs: Financial Express
New Delhi, January 24: In a major move to clear the outstanding statutory dues and wages of public sector undertakings (PSUs), the group of ministers (GoM) on the subject has directed the ministry of heavy industries & public enterprises to bypass the Board for Industrial & Financial Reconstitution (BIFR) for the closure of sick units. The PSU dues are in the region of Rs 2,100 crore.
The GoM, at its earlier meeting on August 14 last year, had pointed out that only one-time budgetary support should be provided.
The GoM had also directed the department of public enterprises to classify the 73 defaulting PSUs into four categories: profit-making PSUs; the PSUs which could mobilise their own resources to clear their dues; the PSUs which had no readily-available resources but owned assets that could be disposed of; and the PSUs which had neither readily-available resources nor disposable assets.
It is the 28 PSUs in the last category that require budgetary support in excess of Rs 750 crore, said sources. Many of these PSUs are under the purview of the textiles ministry. The GoM directed the ministry to expedite the rehabilitation of National Textile Corporation by June 2003 as against the ministry’s intended target of December 2003.
The GoM was of the opinion that mechanisms and modalities should be developed for the disposal of the whole or part of PSU assets with the help of merchant bankers and asset valuers. The GoM will meet again within a month and a half.