Five sick PSUs to be closed down: Union Government

Union Government has announced that 5 sick public sector undertakings (PSUs) will be closed.
It was announced by Union Heavy Industries Minister Anant Geete while replying to a question in the Lok Sabha. The 5 sick PSU that will be closed include HMT and its three units, Hindustan Shipyard. Government also announced that while closing these PSUs, their employees will be provided with very good VRS package.
In the reply, the Minister also announced that there are total 65 units in the list of sick PSUs as of March 31, 2014.
Government also has declared Air India and MTNL as sick PSU units as per the criteria after they have incurred losses worth 50 per cent or more of their average net worth during past four years.
According to the loss figures tabled in Lok Sabha

• Air India has accumulated losses of Rs 5,388 crore in 2013-14. Rs 5,490 crore in 2012-13 and Rs 7,559 crore in 2011-12 respectively.
• MTNL had showed profit of Rs 7,820 crore in year 2013-14. But in the previous years it has incurred losses of 5,321 crore rupees and 4,109 crore rupees.
• Hindustan Shipyard has reported losses of Rs 859 crore, Rs 551 crore and Rs 462 crore in past 3 years.

Month: Current Affairs - March, 2015