The entire process has to be completed in seven months after the decision about any PSU is taken by the Cabinet Committee on Economic Affairs(CCEA)
Except Atomic Energy, Space, and Defence Transport and Telecommunication, Power, Petroleum, Coal, and Other Minerals, Banking, Insurance, and Financial Services, rest of the PSUs fall in non-strategic areas
New Delhi:
Issuing detailed guidelines on the “Implementation of disinvestment strategies- New Public Sector Enterprises (PSE) Policy,” for Central Public Sector Enterprises (CPSEs) in the non-strategic sector. the ministry of finance has outlined that the entire process has to be completed in seven months after the decision about any PSU is taken by the Cabinet Committee on Economic Affairs(CCEA).
The new PSE policy envisages classification of CPSEs into strategic and non-strategic sectors and exempts certain CPSEs such as those setup as not for profit companies under the Companies Act, 2013 or those supporting vulnerable and weaker sections of society, from the scope of the policy.
While, the strategic sectors as per the policy of the Modi government are- Atomic Energy, Space, and Defence Transport and Telecommunication, Power, Petroleum, Coal, and Other Minerals,Banking, Insurance, and Financial Services, rest of the sectors are non-strategic..
Both CPSEs in the strategic sector/ non- strategic sector can be taken up by the government for privatisation, merger, subsidiarisation with another CPSE or for closure.
“Closure of CPSEs may be dealt with in accordance with these new guidelines. All the administrative ministries/ departments concerned with CPSEs are requested to take note of the revised guidelines and also bring the to the notice of all CPSEs under their administrative control for compliance,” said the guidelines issued on Monday.
Under the New Public Sector Enterprises Policy, department of public enterprise (DPE) will identify the CPSEs either for closure or privatisation in the non-strategic sectors in consultation with the concerned administrative ministries/ departments, NITI Aayog, department of expenditure and DIPAM(Department of Investment and Public Asset Management).
Once, the in-principle decision for closure of a CPSE is obtained from CCEA, an inter-ministerial committee (IMC) will be constituted by DPE to drive the process of the closure of CPSEs. The IMC for the sector will comprise of secretary,DPE as chairman, representatives of concerned administrative ministry(ies), DIPAM, NITI Aayog and co-opted members, if any.
Preparation of draft closure note for each CPSE falling in the non-strategic area can be done by the IMC after ascertaining statutory dues, liabilities such as taxes, cess, MAT,dues to secured and unsecured creditors, funds required for VRS wages due to employees, value of movable and immovable assets and has to be completed within three months of cabinet approval, specified the new norms.
Vetttng of draft closure note by IMC and forwarding the same for approval of finance minister on case-to-case basis has to be complete in five months after the cabinet approval.
DPE has also been entrusted with the task of setting up a Special Purpose Vehicle (SPV) for asset monetisation once the SPV is approved by the cabinet. DPE is also required to drive the closure process for CPSEs approved for closure, on the lines of disinvestment process being run bY DIPAM.
The payment of statutory dues/ liabilities towards revenues’ taxes, cesses and rates due to central government or state government or to the loca1 authorities to be completed first.
Earlier, the Government notified the new Public Sector Enterprise (PSE) Policy on 4th February, for Atmanirbhar Bharat.
The strategic sectors as per the policy are Atomic Energy, Space, and Defence Transport and Telecommunication, Power, Petroleum, Coal, and Other Minerals,Banking, Insurance, and Financial Services.
Certain statutory corporations and al1 government companies in which more than 50% equity or controliing stake is held by the central Government are classified as cpSEs.
The subsidiaries of these companies in which any CPSE has more than SO% equity are also
categorised as CPSEs, if registered in India.