Sick PSU Units Identified by Indian Government in 2015

The Indian Government periodically reviews the performance of its Public Sector Undertakings (PSUs). Units that face significant financial distress, accumulate losses, and are unable to meet their financial obligations may be classified as 'sick'. This classification often triggers specific government intervention measures for revival or restructuring.

Defining Sick PSU Units

A sick PSU unit is typically defined by its inability to meet its cash liabilities from its own operating resources, erosion of net worth, and consistent operational losses over a period. Such units often require substantial financial support or strategic decisions regarding their future.

Indian PSUs Facing Financial Challenges in 2015

In 2015, several public sector enterprises were under scrutiny due to their financial performance. The government aimed to strengthen the PSUs sector by identifying units that needed urgent attention.

Analysis of PSU Status for 2015 Declaration

Based on the government's assessments and policy focus during 2015, certain PSUs were identified as facing critical financial health issues. Among the options provided:

• BSNL: Bharat Sanchar Nigam Limited faced financial difficulties, but the question points to specific units declared sick.
• MTNL: Mahanagar Telephone Nigam Limited (MTNL) was known to be facing significant financial difficulties and losses during this period, often requiring government support.
• Air India: The national carrier, Air India, was also undergoing financial restructuring and seeking government assistance due to its accumulated losses and debt.

The provided correct answer indicates that both MTNL and Air India were considered sick PSU units by the Indian Government in 2015. This classification acknowledges their severe financial distress and the necessity for government intervention or restructuring plans.