17 sick PSUs set to be closed down

The Centre has set the stage for the closure of 17 sick public sector units (PSUs), of which four are already under liquidation.

Officials said the Prime Minister’s Office (PMO) has approved the closing down and a Cabinet note on the formal closure of the PSUs was being prepared.

The land these PSUs have will be disposed of. Lease-held land will have to be disposed of in keeping with the terms of the lease agreements. But freehold land or those held in perpetual lease will be transferred or sold to a department or organisation of the central government or to another central PSU. Residual land could be sold to the state government concerned or its designated entity at acquisition price minus the cost of rehabilitation and resettlement incurred. If any land is still available, it will be handed over to the ministry under whose administrative control the PSU operates.

Closing down these sick PSUs is part of a strategy to deal with beleaguered government-owned companies. Revival of rest of the sick PSUs and strategic sales in six of them could also be considered.