Govt revises guidelines for closure of sick, loss making CPSEs

The government has revised guidelines on time bound closure of sick and loss making Central Public Sector Enterprises (CPSEs). The revised guidelines will replace the earlier guidelines issued on September 7, 2016. This information was given by the Minister of State of Heavy Industries and Public Enterprises, Babul Supriyo, in reply to written questions in the Rajya Sabha today.

According to the minister, the new guidelines prescribe timelines for step by step process to be completed by the CPSE under closure and disposal of its assets. "The entire process of closure of a CPSE and disposal of the assets is to be completed within a period of 13 months from the zero date i.e. date of issue of minutes conveying the approval for closure of sick and loss making CPSE by the government," he stated.

The new guidelines give priority for use of land of CPSEs under closure for affordable housing, Babul Supriyo said, adding "the land identified for affordable housing shall undergo the process of disposal as per the guidelines of Ministry of Housing and Urban Affairs." 

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The guidelines on time bound closure of sick and loss making CPSEs uniformly provide for payment of VRS or VSS at 2007 notional pay scale to employees of CPSEs under closure irrespective of the existing pay scales of the company, the minister added.