The government has unveiled a new public sector companies\u2019 policy for non-strategic sectors<\/strong> so that the department of public enterprises (DPE) can drive the privatisation or closure of state-run firms.<\/p>\n In cases where the liabilities are \u201cexorbitantly high\u201d, the government has indicated its willingness to go for the Insolvency & Bankruptcy Code (IBC) route as well.<\/p>\n The policy clearly states that in cases where a director or the head of a PSU fails to cooperate, the government will have the right to replace him or her with a joint secretary rank<\/strong> from the department concerned.<\/p>\n The plan will be beneficial to several companies<\/strong> which the government had proposed to sell but has not been able to find buyers for the last several years.<\/p>\n DPE has been entrusted with preparing the list of companies<\/strong> that would be taken up for closure and disinvestment in consultation with the administrative ministry, Niti Aayog, Dipam and the expenditure department.<\/p>\n DPE will also drive the closure process once CCEA clears it<\/strong>, which will include the extent of receivables and the budgetary support required to clear statutory and other dues, including those to employees.<\/p>\n The latest move is to be implemented for PSUs in sectors other than atomic energy, space, defence, transport, telecommunications, energy & minerals and financial services.<\/p>\n The Department of Public Enterprises is the nodal department for all the Central Public Sector Enterprises (CPSEs). <\/strong><\/p>\n It formulates policies pertaining to CPSEs, and collects and maintains information in the form of a Public Enterprises Survey on several areas in respect of CPSEs.<\/p>\n Department of Public Enterprises is headed by Secretary to the Government of India<\/strong><\/p>\n – The Estimates Committee of 3rd Lok Sabha (1962-67) stressed the need for setting up a centralized coordinating unit, which could also make continuous appraisal of the performance of public enterprises. This led to the setting up of the Bureau of Public Enterprises (BPE)<\/strong> in 1965.<\/p>\n – In May 1990, it was made a full-fledged Department, known as the Department of Public Enterprises (DPE). Presently, it is part of the Ministry of Finance.<\/p>\n Source<\/strong>: This post is based on the article \u201cPSUs with high liabilities may face IBC-based closure<\/strong>\u201d published in TOI<\/strong> on 15th<\/sup> Dec 2021<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":" What is the news? The government has unveiled a new public sector companies\u2019 policy for non-strategic sectors so that the department of public enterprises (DPE) can drive the privatisation or closure of state-run firms. In cases where the liabilities are \u201cexorbitantly high\u201d, the government has indicated its willingness to go for the Insolvency & Bankruptcy… Continue reading PSUs with high liabilities may face IBC-based closure<\/span><\/a><\/p>\n","protected":false},"author":10328,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,9],"tags":[10496],"class_list":["post-153483","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-public","tag-times-of-india","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704945419},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/153483","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10328"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=153483"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/153483\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=153483"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=153483"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=153483"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}What are the key points of the policy?<\/h5>\n
About Department of Public Enterprise (DPE)<\/h5>\n