To fast-track the closure of sick central public sector enterprises (CPSEs), the government on Thursday announced timelines for the disposal of their movable assets, sale of land and retrenchment of employees not opting for voluntary retirement scheme (VRS).
According to Department of Public Enterprises (DPE) guidelines, the sick units will be closed within one year from the date of issue of minutes of the Cabinet approval; currently, the process drags on for years. In order to facilitate this, the settlement of statutory dues and payment to secured creditors will be completed within two months.
The employees not opting for voluntary retirement scheme will be retrenched within four months by completing all legal formalities. The disposal of movable assets will be completed within three months, while the disposal of land would take three to 15 months.
The speeding up of the closure of sick units will help in curbing recurring costs such as the salaries of employees, which constrain the Centre’s finances.