New Delhi : Surplus cash of state-owned enterprises, including those of Maharatnas and Navratnas lying idle in banks may be used to nurse ailing PSUs that can be revived back to health, the government said on Friday.
The government has constituted a committee headed by NTPC Chairman Arup Roy Choudhury to study the proposal and submit a report in two months time. The committee will examine the possibility of formation of a joint venture company funded by seed equity from Maharatna and other cash-rich central public sector enterprises (CPSEs) to administer and manage sick state-run enterprises that can be revived.
“All the Maharatnas and Navratnas combined have a (cash) surplus of around Rs 2 lakh crore which is lying idle in banks. We have given them a proposal to form a joint venture company which has equal equity share of all these cash rich companies. There are 70 sick PSUs and 43 out of these can be revived, the Heavy Industries and Public Enterprises Minister Anant Geete said on the sidelines of the SIAM conference here.
“The new company formed will review and decide which sick PSUs can be revived. We want to give it entire responsibility to take over (revival of sick PSUs). There will be complete transparency in the process and the surplus money lying idle will certainly be used to revive sick PSUs,” Geete added.