Panel to study if a new firm can revive sick CPSEs

New Delhi: A government panel headed by NTPC chairman and managing director Arup Roy Choudhury in two months will submit a report on the proposal to set up a separate company to revive sick PSUs.

The proposed company, funded by seed equity from Maharatna and other cash-rich central public sector enterprises (CPSEs), will administer and manage sick state-run enterprises that can be revived.[caption id="attachment_92986" align="alignnone" width="300"] NTPC chairman and managing director Arup Roy Choudhury. Image courtesy PIB[/caption]

"The issue of revival of sick CPSEs has been drawing the attention of the government and a suggestion has been received regarding setting up of a separate company funded by seed equity from Maharatna and other surplus rich CPSEs to administer and manage such sick CPSEs which can be revived," an official document said.

"It has been decided to set up a Committee to examine holistically this proposal," the memorandum of the Department of Heavy Industries & Public Enterprises said.

Besides examining the feasibility of setting up of a separate company to nurse ailing PSUs back to health, the terms of reference of the Committee include identifying sources from which funds may be raised for the proposed entity as equity capital and to recommend organisational structure of the proposed entity and its interface with the ministries.

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"The secretarial assistance to the committee will be provided by NTPC Limited. The Committee will submit its report in two months time," the document said.

While NTPC chief Choudhury will chair the committee, its other members include representatives from Maharatna and Navratna CPSEs not below the rank of executive director. The panel's member-secretary will be a representative from the Department of Public Enterprises or Board for Reconstruction of Public Sector Enterprises.

The committee may co-opt members of other CPSEs, if necessary, and other members from industry/other experts having knowledge in mergers and acquisitions, takeovers, financial, legal matters etc.

PTI