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Niti Aayog selects loss-making PSUs for strategic sale

CPSEs have been selected on basis of strategic importance and classified as high and low priority companies

Policy Pulse
Publish Date: Jun 15 2016 11:08AM | Updated Date: Jun 15 2016 3:26PM

Niti Aayog selects loss-making PSUs for strategic sale

 Niti Aayog has selected 32 loss-making firms for strategic disinvestment, which include Central Public Sector Enterprises (CPSEs) such as Tyre Corporation of India, Bharat Pumps & Compressors, Central Inland Water Transport Corporation and Bengal Chemicals & Pharmaceuticals and several others. 

 
Of 32 firms, at least 10 might see strategic disinvestment right away while for others proposal is to revive while retaining a subsequent option for strategic disinvestment. 
 
Centre has budgeted Rs 56,500 from disinvestments in this financial year, of which Rs 20,500 crore is from strategic sales. In case of declining firms, the Niti Aayog recommends quick disinvestment. 
 
CPSEs have been selected on basis of their strategic importance and have been classified as high and low priority companies accordingly. 
 
Niti Aayog vice chairman Arvind Panagariya chaired the committee on loss-making CPSEs.
 
Committee also included Aayog’s CEO Amitabh Kant, member Bibek Debroy and secretary of concerned ministries, who met as many as seven times and submitted the report in three months. 
 
"A non-priority sector CPSE, once revived, could always be considered for strategic disinvestment at an appropriate stage," the Aayog said in its report.
 
"In case of subsidiaries the revival process can be approached through merger with the parent company," the Aayog noted in its report.