Prime Minister Narendra Modi
Prime Minister Narendra Modi

Cabinet approves revised norms for time-bound closure of CPSEs

ANI | Updated: Jun 06, 2018 17:20 IST

New Delhi [India] Jun 6(ANI): The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved the revised guidelines of the Department of Public Enterprises (DPE) on the time-bound closure of loss-making Central Public Sector Enterprises (CPSEs) and disposal of movable and immovable assets.
The revised guidelines would reduce delays in implementation of closure plans of sick/loss making CPSEs. These guidelines will replace the guidelines issued by DPE in September 2016.
These guidelines provide a broad framework for expeditious completion of various processes and procedures for closure of CPSEs by laying down important milestones in the closure process along with timelines, outlining the responsibilities of the concerned Ministries in the process.
The guidelines provide for advance preparatory action to be taken by administrative Ministry and CPSEs, preparation of closure proposal, settlement of statutory and other liabilities of the CPSE under closure and modalities for disposal of movable and immovable assets of such CPSEs in a time-bound manner.
They also give first priority for utilization of land of CPSEs under closure for affordable housing as per the relevant guidelines of Ministry of Housing and Urban Affairs (MoHUA).
These guidelines shall apply to all sick and loss-making CPSEs, where approval for closure has been obtained by administrative Ministry or Department from the CCEA or the Cabinet.
Secondly, the process for obtaining the approval of the competent authority is underway after the administrative Ministry has decided for the closure of the CPSE.
By assigning priority to affordable housing, it would make available land parcels of loss-making CPSEs under closure for the Government flagship programme of affordable housing being managed by Ministry of Housing and Urban Affairs. (ANI)