Tag: central public sector enterprise

The Finance Ministry has launched pointers for the implementation of the brand new central public sector enterprise (CPSE) coverage, aimed on the privatisation, merger, closure or subsidiarisation of non-strategic CPSEs. Under the norms, as soon as the Union Cabinet or Cabinet Committee on Economic Affairs clears disinvestment or closure of a CPSE, it will likely be disinvested fully inside seven months.
The Department of Public Enterprises (DPE) will determine CPSEs for closure or privatisation in non-strategic sector in session with administrative ministries or departments and search approval from the CCEA. The administrative ministry of the involved CPSE will work out the small print of any proposed closure, together with particulars of budgetary assist required for financing the closure of the CPSE and updating of information of the movable and immovable property of the CPSE.
The DPE will then put together a word based mostly on the inputs of the executive ministry and submit it to an inter-ministerial committee, which can then vet the proposal earlier than closing approval is sought from the Finance Minister.
Post the ultimate approval by the finance minister, the norms envisage a timeline of two months for the method, together with settlement statutory dues, fee to secured collectors, settlement of VRS for workers, and switch of property to a holding firm.
The pointers additionally state that any administrators and even the CMDs of the chosen CPSEs that don’t cooperate could also be faraway from their roles and changed by officers from the involved ministry. “If the Director(s) of the CPSE(s) fails to co-operate, the Administrative Ministry/ Department can take a view on removing the Functional Directors including the CMD and give additional charge of the CMD to the Joint Secretary concerned and charge of Functional Directors to other senior officers in the administrative Ministry/Department,” the rules famous.