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Cabinet approves closure of six PSUs

The Union Cabinet approved closure of six 'unviable' public sector undertakings including National Bicycle Corporation, Weighbird India and Tannery and Footwear Corporation.

Other PSUs that have been recommended for closure are Mining and Allied Machinery Corporation Limited, Bharat Process Mechanical Engineers Limited and Rehabilitation Industries Corp Limited, Parliamentary Affairs Minister Pramod Mahajan told reporters after the cabinet meeting on Tuesday.

He said the cabinet decided to convey to the Board for Industrial and Financial Reconstruction and the high courts that it concurred with the recommendation of the expert group that these six PSUs were unviable and should be closed down.

The BIFR has already recommended closure of these six PSUs.

The minister said the remaining employees of the six PSUs would be offered a voluntary separation scheme for a period of two months, for which the government would make an extra budgetary provision of Rs 2 billion.

The cabinet also decided to submit a plan for revival of Sick Bharat Opthalmic Glass Limited to BIFR as recommended by the expert group, Mahajan said.

The expert group had recommended closure of seven out of nine PSUs referred to it by the government. The group suggested that two PSUs - Bharat Opthalmic Glass and National Instruments Limited could be revived.

PTI

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