Govt to shell out Rs 1,000cr to clear public sector dues

The group of ministers (GoM) on payment of outstanding statutory dues of PSUs on August 14 this year had directed the administrative ministries to prepare the mode of payment in six weeks. But the administrative ministries have still not informed the GoM about the mode of payment. The GoM is headed by Planning Commission deputy chairman KC Pant.

The administrative ministries were supposed to inform the GoM how they would take care of the statutory and non-statutory dues of PSUs. As much as 80 per cent of the dues of all PSUs are from PSUs under the four ministries of textiles, heavy industries, coal and steel. The statutory and non-statutory dues of Bharat Coking Coal Ltd (BCCL) and National Textiles Corporation (NTC) along with its subsidiaries stand at Rs 799 crore.

Some progress, however, has been made in the case of the mills of National Textiles Corporation (NTC) and many of the difficulties have been sorted out, officials said. An asset sale committee has been set up under the ministry of textiles and the Board for Industrial & Financial Reconstruction (BIFR). Most of the NTC mills are under the purview of BIFR.

More than 8,000 NTC employees have availed the voluntary retirement scheme which cost Rs 350 crore, officials said.

The GoM had categorised the 73 PSUs under four groups: profit-making PSUs; the ones that have operating profits; the PSUs with operating losses but considerable assets; and the PSUs which incur losses and have little by way of assets. The government will have to bear the burden of mostly the fourth group of PSUs, which are more than three dozen.

While the entire BCCL dues worth Rs 411 crore are of statutory nature, in the case of NTC and its subsidiaries there are statutory dues worth Rs 304 crore and non-statutory dues worth Rs 84 crore.

Other big defaulters are National Jute Manufacturing Corp Ltd (Rs 159 crore), Indian Drugs & Pharma Ltd (Rs 101 crore), Heavy Engineering Corporation (Rs 90 crore) and Bharat Refratories Ltd (Rs 70 crore).