Financial Daily from THE HINDU group of publications
Thursday, Oct 16, 2003
Financial Daily from THE HINDU group of publications Thursday, Oct 16, 2003 |
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PSU Government - Policy Industry & Economy - PSU Govt announces one-time package for sick PSUs Our Bureau
New Delhi , Oct. 15 BASED on the recommendations of the Group of Ministers on payment of outstanding statutory dues and salary/wages of the employees of the Central Public Sector Undertakings (CPSUs) and other issues, the Union Cabinet today decided to extend one-time financial support to sick and loss making CPSUs. Briefing newspersons, Ms Sushma Swaraj, Minister for Parliamentary Affairs, said, "the one time financial support to sick and loss making CPSUs would be based on action plans of the administrative ministries and departments for revival or closure or disinvestments of the enterprise." The payment of such dues would be, to the maximum extent possible from the resources of PSUs but to the extent inevitable, one time budgetary support will be provided by the Government to meet the resource gap on case-to-case basis, the Minister said. Further, the outstanding statutory dues and salaries/wages of workers and employees in the CPSUs would be cleared preferably within a time limit ranging between two months to one year. For the profit making enterprises, as well as the loss making enterprises having the capacity to clear the outstanding dues from their own profits or operating surpluses would do so preferably within a period of two months. Ms Swaraj also said that the administrative ministries and departments may consider making appropriate reference to the Ministry of Law in case there are legal issues to be tackled. The time bound action plan will be implemented by the enterprises under the supervision of the respective administrative ministries in case of loss making or sick PSUs where surplus land or property are available for sale to generate funds for payment of dues. "If there is a possibility of considerable delay, the administrative ministry in consultation with the Finance Ministry would raise resources from the market with Government guarantee and 50 per cent interest subsidy," she said.
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