Centre plans to shut loss-making PSUs: Report

The government is planning for the closure of loss-making Public Sector Undertakings (PSUs) instead of endlessly waiting for a buyer, the Times of India has reported.

"There are several cases where the disinvestment process has been going for years. There is very little interest in some of the companies. Keeping all these in mind, it has been decided that wherever a buyer interest is muted, we will recommend for the closure of the unit," an official told TOI

The report also mentioned that the government will avoid opting insolvency and bankruptcy route for the loss-making PSUs. The government has been looking for a buyer for state-run companies like Pawan Hans for a long time.

"The view within the government is that we should move and not let precious government revenue be wasted," the newspaper quoted the official.

In the last few years, the government had identified more than 20 loss-making PSUs. But is still struggling to find buyers for them. The government has managed to merge some of the PSU companies to get a grip on them.