Niti Aayog wants the government to discontinue investing in loss-making PSUs

Niti Aayog, the think-tank of Indian government, has come up with a list of 32 loss-making PSUs and wants the government to consider strategic disinvestment from these companies.

The list includes central public sector enterprises (CPSEs) like Bharat Pumps & Compressors, Tyre Corporation of India, Central Inland Water Transport Corporation and Bengal Chemicals & Pharmaceuticals. Ten out of these 32 companies could be immediately considered for strategic disinvestment, while the rest 22 could be given a second chance. The government is considering a suggestion to revive them while retaining a subsequent option for strategic disinvestment.

"The government will now look into individual cases along with their respective administrative ministries. The firms where we may gsome valuations will be put on the block first," said a senior government official, who admitted that the list has been submitted to the PMO.

This fiscal has seen the government budgeting Rs 56,500 crores from strategic disinvestments, out of which Rs 20,500 crore is from strategic sales.

"The idea behind the recommendations is to ensure government gets rid of non-viable public sector enterprises as huge amount of money is sinking into these companies," a senior Aayog official told ET.

These CPSEs have been identified based on their strategic importance, which also served as the basis of them being classified as high and low priority firms. It took several Aayog officials a time of three months to come up with the list.

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