Set aside divestment proceeds for sick PSUs’ revival: panel

Set aside divestment proceeds for sick PSUs’ revival: panel

What has happened?

A Parliamentary panel has recommended the earmarking of a defined portion of proceeds from the divestment of State-owned enterprises for funding revival, restructuring and modernisation proposals of sick public sector undertakings (PSUs) that have the potential to turn around

Divestment target

• The government had set a target of raising Rs. 80,000 crore in 2018-19 by selling stakes in the State-owned firms, with strategic divestment of 24 CPSEs (central public sector undertakings) on the cards and privatization of Air India on track
• The Aayog had already recommended strategic divestment of 40 sick public sector undertakings

Parliamentary Standing Committee observations

In its report, the Parliamentary Standing Committee on Industry said it was of the firm opinion that while making a decision to disinvest PSUs, especially those that are profit-making, the government must accord due consideration to the jobs supported by them, the track record of their contribution to the national economy, their capex (capital expenditure) creation potential and also their role in balancing the social/regional fabric