by Harish Gupta, National Editor, Lokmat Group
Strategic sale of AI, ITDC on cards
22 sick PSUs to be shut down
AI failed to revive itself even after a ballout package of Rs.20,000 crores.
PSUs suffer One lakh crores annual loss
Harish Gupta
New Delhi, Feb 28
The Modi government has served an ultimatum to country’s 45 loss-making Public Sector Undertakings including Air India, India Tourism Development Corporation (ITDC) etc to perform or perish.
Highly placed sources in the Prime Minister’s Office and NITI Aayog say that the PM is determined to cut down Rs one lakh crores annual losses incurred by these PSUs year after year and there is no accountability.
One of the proposals gathering pace is to find a strategic partner for Air India. The PM felt at a recent review meeting with AI Chairman Ashwani Lohani that the flagship airlines failed to revive itself even after a bailout package of Rs 20000 crores. Modi made it clear that the government would not waste tax payers money anymore and gave three more months to him to tone up.
Similarly, the NITI Aayog came to the conclusion that the government should not have any business to be in the hotel business and barring the Ashok in the Lutyen’s Delhi, the government should exit them.
failed to turn around the loss making national carrier, people with knowledge of the matter said.
It now transpires that several presentations have been made to the finance ministry and the PMO by experts and stake holders in the recent past.
The NITI Aayog, tasked with preparing a roadmap for ailing PSUs, had submitted a list of 74 companies, had suggested the closure of 26 companies. With regard to remaining 54, the Aayog suggested status quo in case of two PSUs, strategic disinvestment of 10, revival with option for strategic disinvestment for 22, transfer of ownership of six, merger of three and long term lease of five.
Finally, the government has decided to shut down 15 loss-making public sector units, of which at least five have been cleared by the cabinet, while opting to go against internal advice and revive three state-run companies.
The Centre also has to meet its disinvestment target of Rs 56,500 crore. On the list are large state-run companies such as Container Corporation of India, Bharat Earthmovers, as many as three plants of the Steel Authority of India and unlisted entities like Cement Corporation of India. The government has also exited from stocks held by SUUTI in some of the private sector companies like ITC, L&T and others. SUUTI is an arm of the central government which held stocks running into thousands of crores.
