Govt moves to speed up closure of sick, loss-making units

The union cabinet on Wednesday approved revised guidelines for time bound closure of sick or loss making central public sector enterprises and disposal of movable and immovable assets.

The guidelines also prescribe a uniform VRS policy for workers, based on 2007 notional pay scale, irrespective of the pay scale in which they are working.
The cabinet chaired by Prime Minister Narendra Modi approved the revised guidelines of the Department of Public Enterprises (DPE) that would help reduce delays in implementation of closure plans of sick/loss making CPSEs. 
These guidelines will replace the guidelines issued by DPE in September 2016.
These guidelines provide a broad framework for speedy completion of various processes and procedures for closure of CPSEs by laying down important milestones in the closure process along with timelines, outlining the responsibilities of the concerned ministries/ departments / CPSE, etc in the process.
The guidelines provide for advance preparatory action to be taken by administrative ministry / department and CPSEs, preparation of closure proposal, settlement of statutory and other liabilities of the CPSE under closure and modalities for disposal of movable and immovable assets of such CPSEs in a time bound manner.
Under the guidelines first priority for utilisation of land of CPSEs under closure will be given for 'affordable housing' as per the relevant guidelines of ministry of housing and urban affairs (MoHUA).
Workers would be giver VRS based on a uniform policy based of 2007 notional pay scale irrespective of the pay scale in which they are working.
These guidelines will apply to all sick / loss making CPSEs, where approval or `in principle approval’ for closure has been obtained by administrative ministry or department concerned from the CCEA or cabinet, or where the process for obtaining the approval of the competent authority is underway after the administrative ministry or department has decided for the closure of the CPSE, says a government release.