Govt to continue aid to loss-making PSUs

Giving relief to the employees of loss-making public sector units, the government on Wednesday decided to continue supporting distressed public sector units in meeting their wage bills and other statutory payments.

The decision to extend government support to 10 loss-making PSUs up to March 31 was taken by the Cabinet Committee on Economic Affairs.

"The government will continue to support them (loss-making PSUs) for wage arrears up to March 31," Home Minister P Chidambaram told reporters after the CCEA meeting.

National Aviation Company of India Ltd (NACIL), with a mounting loss Rs 2,226 crore (Rs 22.26 billion), is among the 10 loss-making units that depend on the central exchequer for meeting their expenses.

NACIL was formed as a holding company after the merger of Air India and Indian Airlines in 2007.

The other big loss-making central enterprises are National Textile Corporation, Eastern Coalfields, Hindustan Photo Films Manufacturing Co Ltd and Hindustan Cables Ltd.

In another decision, the government cleared an additional post of joint secretary in the department of public enterprises. At present the department is manned by a secretary and a joint secretary.

"In view of increasing work load and need of good governance, CCEA approves one more joint secretary in the DPE," Chidambaram said.