Economy

NITI Aayog submits proposals for divestment

The first set has been submitted to the Prime Minister’s Office, which will take a decision

The NITI Aayog has submitted two sets of recommendations to the Centre for strategic disinvestment of State-owned companies, raising hopes that the BJP-led NDA Government will kickoff reforms for the public sector this year.

The first of these, a highly-placed government source told the The Hindu, is a list of recommendations on each of the sick and loss-making government-owned companies. There are about 74 such companies in all. Of these, for about 25 companies in which revival plans were attempted but had failed, it has suggested closure, after which their assets, especially land holdings, could be disposed off and employees be offered voluntary retirement. In the remaining cases, either mergers with other public sector units or strategic disinvestment is recommended. In some companies, the Aayog preferred to let revival plans run their course, before taking a call on their future.

This set of suggestions was submitted to the Prime Minister’s Office, which will take a decision on subsequent action.

The second set of suggestions from the Aayog, the source said, is a separate list of 15 PSUs in which it has recommended strategic disinvestment on priority. This list has been submitted to the Department of Investment and Public Asset management in the Finance Ministry.

The Cabinet Committee on Economic Affairs had in February directed the Aayog to identify PSUs that the Department could take up for strategic disinvestment and also suggest norms for doing so. Any disinvestment of government’s shareholdings, closure or mergers of PSU will need the Union Cabinet’s approval, the source confirmed. The source refused to reveal the identities of PSUs included in each category of recommendations.

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Printable version | Feb 20, 2020 7:36:35 AM | https://www.thehindu.com/business/Economy/NITI-Aayog-submits-proposals-for-divestment/article14426029.ece

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