Government plans asset reconstruction like company to revive or sell sick public sector units.
NEW DELHI: The government plans to set up a company on the lines of an asset reconstruction firm that will have the mandate to revive or sell sick state-run enterprises.
A senior official told ET that the company will be funded by cash surplus public sector units. "The new approach will weed out those companies which are not financially viable," the official said.
"The rest can be taken by these PSUs as per the strategic advantages these sick companies may have to offer." The heavy industry ministry is of the view that an independent firm will be better equipped to assess the viability of a company.
"So, if it is decided that a particular company is not fit for revival, its administrative ministry may take a call to keep it or go for any form of stake sale," a ministry official said.
According to government data, there were 61 sick public sector companies at the end of March 2013. About 50 central public sector enterprises (CPSEs), including Air India, BSNL, MTNL and ITI, have been making losses for the past three fiscals.
"The new company can be funded by maharatnas and other PSUs. It will have the mandate to manage financial, legal and administrative aspects of the sick company," said the official cited first. The head of a state-run firm said the proposed firm can work like an asset reconstruction company and look at various measures to revive the sick unit.
"If needed, it can also recommend outright stake sale after exploring all options," he added. The government has identified seven sick firms—HMT Bearings Ltd, Richardson & Cruddas Ltd, Tungabhadra Steel Products Ltd, HMT Machine Tools Ltd, Tyre Corporation of India Ltd, Central Inland Water Transport Corporation Ltd and Hoogly Dock & Port Engineers Ltd — for revival through disinvestment or joint venture.
A committee under NTPC chairman Arup Roy Choudhury has now been set up look at the formation of such a firm, which will have representatives from other PSU companies.
"The committee can also rope in experts, its basic aim is to examine the feasibility of setting up this firm funded by seed equity from cash surplus firms," said the heavy industry ministry official.
The panel will identify alternative sources of raising capital for the proposed firm and recommend its organisational structure. "It will submit its report within two months," the official said.
Earlier, heavy industry and public enterprises minister Anant Geete had said that he will work towards reviving sick public sector enterprises. "There are many sick PSUs I have discussed with PM. We will make efforts to revive sick units," he had said.
UD Choubey, director-general of SCOPE, the apex body of central government-owned units, said revival of sick PSUs is paramount. "We can explore the possibilities through this route," he added.
Will the Minister of HOME AFFAIRS be pleased to satate :-
(a) whether it is a fact that the National Population Register and Unique Identification Number Projects are proposed to be brought under the Registrar General of India;
(b) if so, the details thereof;
(c) whether the National Population Register (NPR) is proposed to be linked with the Right to Vote also; and
(d) if so, the details thereof?
MINSTER OF STATE IN THE MINISTRY OF HOME AFFAIRS
(SHRI KIREN RIJIJU)
(a) to (d): A Statement is laid on the Table of the House.
STATEMENT IN REPLY TO PARTS (a) TO (d) OF RAJYA SABHA STARRED QUESTION NO. 304 FOR 30.7.2014.
(a) to (d): No, Sir.
The creation of National Population Register(NPR) is undertaken as per the provisions of the Citizenship Act, 1955 and Citizenship (Registration of Citizens and Issue of National Identity Cards) Rules 2003. The demographic data for NPR has already been collected for the entire country in 2010 and also digitized, thereby creating an electronic database of 118 crore persons. Biometric enrolment has been completed for more than 25.25 crore persons (including caputure of Aadhaar numbers).
To minimise the duplication of efforts between NPR and UIDAI, the capture of biometrics in the country has been divided between National Population Register (NPR) and Unique Identiifcation Authority of India (UIDAI) by allocating 12 States/UTs to NPR and 24
States/ UTs to UIDAI. If during the course of NPR biometric enrolment, a person indicates she/he is already enrolled for Aadhaar, the biometric data will not be captured for NPR. Instead the Aadhaar number will be recorded in NPR and the biometric data will be sourced from the UIDAI.
The Government has now decided to create the National Register of Indian Citizens (NRIC) based on the information collected under the scheme of NPR by verifying the citizenship status of all individuals in the country and issue of National Identity Cards to the citizens.