New Delhi: The Modi government has completed the closure formalities of just two of 19 terminally sick central public sector enterprises (CPSEs) that have been permitted for closure since the party's ascendancy to power in 2014. The inability to wind up more sick CPSEs has been attributed to delays in disposal of lands and other immovable assets, non-payment of statutory dues like salaries and taxes and stay orders put by courts.
There are 71 in the list
In the case of another 10 such CPSEs recommended for closure by the National Institute for Transforming India (NITI) Aayog, the government has not made a decision on the matter. "The government is literally struggling to close down the sick CPSEs which are a drag on the exchequer" Indian Oil —CREDA Biofuels and CREDA-HPCL Biofuels are the ones have been liquidated. On the hand, many large loss-making companies, including HMT Watches, Indian Drugs, Pharmaceuticals (IDPL) and Tungabhadra Steel Products and Hindustan Photo Films, are still waiting to be closed. Niti Aayog last year set up an oversight committee to fasten the closure of sick CPSEs.
There were 71 loss-making CPSEs which posted combined losses of Rs 31,261 crore, up 14 percent in FY18. "The government is literally struggling to close down the sick CPSEs which are a drag on the exchequer," an official said.