NITI Aayog constituted a committee on Sick/Loss making/Non performing Central Public Sector Enterprises (CPSEs) on March 9th 2016. The committee noted that financial performance of 74 CPSEs has been unsatisfactory and a number of these have requested for and received periodic support from budgetary resources. Over the years, this has become a significant drain on limited resources of the government. The committee has made the recommendations of closure/winding up of 26 such CPSEs.

Under the Central Sector Scheme of DPE i.e. Counseling, Retraining & Redeployment (CRR Scheme) skill development training is providing to CPSE’s employees separated under Voluntary Retirement Scheme (VRS)/Voluntary Separation Scheme (VSS) (VRS/VSS Optees) to enable them to get redeployment or to take up self-employment. The Scheme has a provision for training of the dependent also in lieu of the VRS/VSS Optees.

This was stated by Shri Arjun Ram Meghwal, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.

Closure of public sector undertakings prompts workforce retraining under a central scheme to enable redeployment and self employment. A government committee found many central public sector enterprises financially unsustainable and recommended the closure/winding up of 26 CPSEs to reduce recurrent budgetary support demands. Separately, the Counseling, Retraining & Redeployment (CRR) Scheme under the Department of Public Enterprises provides skill development training to employees separated under Voluntary Retirement/Voluntary Separation Schemes to enable redeployment or self employment, and permits training of dependents in lieu of the separated employee.