Modi Government is determined to finish the PSUs. The latest is that it has decided to close 5 PSUs viz. HMT Watch, HMT Chinar Watch, HMT Bearing, Thungabhadra Steel and Hindustan Cables. It is expected by the government to get Rs. 22,000 crore from the sale, while the cost, including VRS etc. will be around Rs. 1,400 crore.
These companies are situated in the heart of the cities, have a lot of land and building assets in addition to the infrastructure. Since these are treated as sick companies, the sale will be done just like distress sale, meaning that the companies may be handed over for a meagre price compared to its assets as has been sold in the earlier NDA regime companies like VSNL, Centaur Hotel and others.