The Union Cabinet on Wednesday approved the revised guidelines of the Department of Public Enterprises (DPE) on the time bound closure of sick or loss-making Central Public Sector Enterprises (CPSEs) and the disposal of movable and immovable assets.
According to the new guidelines, the surplus land obtained from the closure of such companies would prioritised to provide affordable housing.
“The guidelines give first priority for the utilisation of land of CPSEs under closure for affordable housing as per the relevant guidelines of Ministry of Housing and Urban Affairs (MoHUA),” the government said in a release.
“Since there are employees working in these CPSEs, Government decided that closure should not cause hardship to them and has now laid down a uniform policy to give workers VRS at 2007 notional pay scale irrespective of the pay scale in which they are working,” it added.
These guidelines provide a broad framework for the expeditious completion of various processes and procedures for the closure of CPSEs by laying down important milestones in the closure process along with timelines, outlining the responsibilities of the concerned Ministries, Departments or CPSE, the government added.
They will apply to all sick or loss-making CPSEs, where approval for closure has been obtained by the administrative ministry or department from the Cabinet, or where the process for obtaining the approval is underway after the administrative ministry or department has decided in favour of the closure of the CPSE.