Millennium Post

Govt may shut sick PSUs’ cure board, set up new body

The Government is considering a proposal to dissolve the Board for Reconstruction of Public Sector Enterprises (BRPSE) and replace it with a new entity to speed up decisions related to revival of ailing state-owned units which have become a burden on taxpayers. “We are in discussions to dissolve the BRPSE and constitute a new entity for sick PSUs,” Union Heavy Industries and Public Enterprises Minister Anant Geete said.

The Ministry is likely to move a Cabinet note soon for the same, sources said. The new entity for approval of revival of any sick PSUs may be in the form of a committee headed by Cabinet Secretary with representatives from the administrative ministry under which the respective PSU falls, they said.

The move to replace the BRPSE with a new entity is expected to expedite the decision-making for stake sale in most of the 65 sick central public sector companies or closure of unviable units.
The minister also said, “We are going to take a call on sick PSUs which cannot be revived soon”.
The BRPSE was set up in 2004 to prepare revival plans for sick state-owned companies.
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