Sick PSU units must get reasonable revival chances: Parliamentary panel

A Parliamentary panel has suggested the government to tread with caution in strategic divestment and shutting down sick public sector units and also asked it to provide reasonable and financially prudent chances for their revival.

In its report, the Department Related Parliamentary Standing Committee on Industry said it is always prudent to keep in mind that Central Public Sector Enterprises (CPSEs) are also meant to serve certain larger social causes.

Citing example of the 100 per cent disinvestment of Hindustan Newsprint Ltd (HNL), it said the decision was taken despite the dissent of the Department of Heavy Industries.

"Taking this case as a cue, the committee recommends that the Niti Aayog shall be asked to take a more holistic view in case of decisions regarding CPSEs that may be perceived to have a chance of progressing well with a little help.

"This is based on the considered opinion of the committee that CPSEs are still relevant and they may be allowed reasonable and financially prudent chances to revive and restructure," the report said.

It noted that the Niti Aayog has recommended strategic disinvestment of five units, transfer to states of four, one for part divestment and two to be considered for later disinvestment.

The committee observes that if these recommendations are approved, the department will be left with "very few" CPSEs under its administrative control, it said.