‘Take holistic view on CPSEs closure’

A parliamentary panel has suggested the Niti Aayog to develop a more 'holistic view' on strategic disinvestment or closure of state-owned enterprises that may have a chance of progressing with some assistance. In its report tabled in Parliament on Tuesday, the Standing Committee on Industry said it believes that "”CPSEs are still relevant and they may be allowed reasonable and financially prudent chances to revive and restructure". On the issue of strategic disinvestments or closures, the committee said though the modern theories of government and economics want the government to withdraw from business, while deciding upon disinvestments /closures, it is always prudent to keep in mind that CPSEs are also meant to serve larger social causes. Citing the example of Hindustan Newsprints Limited, a central public-sector enterprise (CPSE) which was classified only as "Incipient Sick" in 2016, the panel found that the decision was taken despite the dissent of Department of Heavy Industry and the perception that the company could have turned around with a modernisation mill development plan that was under submission. Besides, the parliamentary panel also wants the government to examine the feasibility of transferring the subsidy on electric vehicles (EVs) directly to individual buyers instead of original equipment manufacturers, through direct benefits transfer under the FAME India Scheme.