Lok Sabha Question No. 4353 (UNSTARRED), answered on 2017-03-28
Subject: Promotion of PSUs
Ministry: CHEMICALS AND FERTILIZERS
Asked by: YOGI ADITYANATH, RAYAPATI SAMBASIVA RAO, M. I. SHANAVAS, MAUSAM NOOR

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS AND FERTILIZERS DEPARTMENT OF CHEMICALS AND PETROCHEMICALS

LOK SABHA UNSTARRED QUESTION NO. 4353 TO BE ANSWERED ON 28.03.2017

## Promotion of PSUs

4353: SHRI YOGI ADITYA NATH:

SHRI RAYAPATI SAMBASIVA RAO:

SHRI M.I.SHANAVAS:

SHRIMATI MAUSAM NOOR:

Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:

- (a) The  details  of  Public  Sector  Undertakings  (PSUs)  under  the  administrative control of the Ministry;

- (b) the  details    of  the  profit  Making  PSUs  as  well  as  those  PSUs  incurring  losses during the last several years along with the action plan for turning the loss making PSUs into viable ventures;

- (c) the steps taken so far for promotion of the said PSUs in the country; and

- (d) whether  any  flagship  programme  is  being  run  by  the  Ministry,  if  so,  the  details thereof along with the funds allocated and utilized under the said scheme during the last three years?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF CHEMICALS AND FERTILIZERS (SHRI  MANSUKH L. MANDAVIYA)

(a)

|   S. No. | Name of Department        | Name of PSUs                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|----------|---------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        1 | Department of Fertilizers | i. Brahmaputra Valley Fertilizer corporation Limited (BVFCL) ii. The Fertilizers And Chemicals Travancore Limited (FACT) iii. FCI Aravali Gypsum and Minerals India Limited (FAGMIL) iv. Fertilizer Corporation of India Limited (FCIL) v. Hindustan Fertilizer Corporation Limited (HFCL) vi. Madras Fertilizers Limited (MFL) vii. National Fertilizers Limited (NFL) viii. Projects & Development India Limited (PDIL) ix. Rashtriya Chemicals & Fertilizers (RCF) |

|   2. | Department of Chemicals and Petrochemicals   | i. Brahmaputra Cracker & Polymer Limited(BCPL) ii. Hindustan Insecticides Ltd. (HIL) iii. Hindustan Organic Chemicals Ltd. (HOCL) iv. Hindustan Fluorocarbons Ltd. (HFL - (which is a subsidiary of HOCL).                                                             |
|------|----------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    3 | Department of Pharmaceuticals                | i. Karnataka Antibiotics and Pharmaceuticals Limited (KAPL) ii. Indian Drugs and Pharmaceuticals Limited (IDPL) iii. Bengal Chemicals and Pharmaceuticals Limited (BCPL) iv. Rajasthan Drugs and Pharmaceuticals Limited (RDPL) v. Hindustan Antibiotics Limited (HAL) |

(b) & (c)

## Department of Fertilizers:-

| S. No.                    | Name of PSU                                               | Profit/lost status during last two years and in current year   | Profit/lost status during last two years and in current year   | Profit/lost status during last two years and in current year   |
|---------------------------|-----------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------|
|                           |                                                           | 2013-14                                                        | 2014-15                                                        | 2015-16                                                        |
| Department of Fertilizers | Department of Fertilizers                                 |                                                                |                                                                |                                                                |
| 1                         | Brahmaputra Valley Fertilizer corporation Limited (BVFCL) | Loss                                                           | Profit                                                         | Profit                                                         |
| 2                         | The Fertilizers And Chemicals Travancore Limited (FACT)   | Loss                                                           | Loss                                                           | Loss                                                           |
| 3                         | FCI Aravali Gypsum and Minerals India Limited (FAGMIL)    | Profit                                                         | Profit                                                         | Profit                                                         |
| 4                         | Fertilizer Corporation of India Limited (FCIL)            | All units of FCIL are closed.                                  | All units of FCIL are closed.                                  | All units of FCIL are closed.                                  |
| 5                         | Hindustan Fertilizer Corporation Limited (HFCL)           | All units of HFCL are closed.                                  | All units of HFCL are closed.                                  | All units of HFCL are closed.                                  |
| 6                         | Madras Fertilizers Limited (MFL)                          | Profit                                                         | Loss                                                           | Loss                                                           |
| 7                         | National Fertilizers Limited (NFL)                        | Loss                                                           | Profit                                                         | Profit                                                         |
| 8                         | Projects & Development India Limited (PDIL)               | Profit                                                         | Loss                                                           | Loss                                                           |
| 9                         | Rashtriya Chemicals & Fertilizers (RCF)                   | Profit                                                         | Profit                                                         | Profit                                                         |

Actions  taken  by  the  Government  to  for  turning  the  loss-making  PSUs  into  viable ventures are as under:

## I. The Fertilizers And Chemicals Travancore Limited (FACT) :

To avert immediate crisis, a plan loan of Rs. 1000 Crore has been given to FACT by sanction letter issued on 21 st March, 2016.

Steps for financial restructuring of FACT is also being taken. FACT has submitted a proposal for its financial restructuring. The proposal inter-alia contains waiver of GoI loan & interest thereon, one-time compensation for the use of high cost LNG, approval for sale of its land  and  waiver  of  income  tax  on  profit  on  sale  of  land.  In  its  proposal  FACT  has  also submitted to repatriate the Plan loan of Rs. 1000 crore by the money generated by the sale of land. Proposal of FACT is under consideration of the Department of Fertilizers.

## II. Madras Fertilizers Limited (MFL):

In terms of DPE  guidelines on streamlining the mechanism  for revival and restructuring  of  sick  Central  Public  Sector  Enterprises,  DOF  has  approved  to  engage  an external  expert  agency  which  has  experience  and  expertise  of  the  business  environment, operational issues, technology option and financial viability of the sector in which such CPSE is working. IFD has concurred in the proposal and the file is under submission. Accordingly, MFL  was  asked  to  initiate  process  for  engagement  of  an  external  expert  agency.  MFL engaged PDIL as expert agency on 02.06.2016. PDIL has submitted its study report. The Board  of  MFL  has  approved  the  study  report  and  the  same  is  under  consideration  in  the Department of Fertilizers.

## III. Projects Development of India Limited (PDIL):

Govt. of India has decided to sold out 100% shareholding in PDIL through outright sale to  an  identified  buyer  discovered  through  a  two-stage  auction  process.  Auction  Process  is under progress.

## Department of Chemicals and Petrochemicals:-

(a) M/s Brahmaputra Cracker & Polymer Limited (BCPL), Assam  is a PSU  in Petrochemical Sector under administrative control of the Department which is implementing Assam Gas Cracket Project, (AGCP). The project was commissioned on 2 nd January 2016 and was dedicated to the nation by the Prime Minister, Shri Narendra Modi on 5 th February, 2016  at  BCPL  Complex,  Lepetkata,  Dibrugarh.  The  plant  is  under  stabilization  and  has produced about 81,000 MT of polymers during the current financial year 2016-17 (up to 28 th February,  2017).  The  project  is  of  great  economic  significance  for  North  Eastern  Region (NER).

(b) The three Chemical PSUs namely, Hindustan Insecticides Limited (HIL) is  profit  making  PSU,  Hindustan  Organic  Chemicals  Limited  (HOCL)  and Hindustan  Fluorocarbons  Limited  (HFL)  are  loss  making  PSUs.  Profit/loss figures of the three PSUs during the last three years are given below:

(Rs. in crore)

| Name of PSU   | Profit / (Loss )   | Profit / (Loss )   | Profit / (Loss )   |
|---------------|--------------------|--------------------|--------------------|
|               | 2013-14            | 2014-15            | 2015-16            |
| (i). HIL      | 1.84               | 1.60               | 1.83               |
| ( i i ) HOCL  | (176.85)           | (215.49)           | (173.91)           |
| (iii). HFL    | (24.82)            | (3.77)             | (11.11)            |

The action plan for turning the loss making PSUs viz. HOCL and HFL in to viable ventures are as follows:

(i)  HOCL: A  restructuring  plan  for  HOCL  is  being  prepared  taking  into  account  various issues like assets and liabilities position of HOCL, feasibility of generating adequate funds to liquidate the liabilities, assessment of long term viability of the company's business and future operations,  strategic  importance  of  the  N2O4  plant  for  ISRO's  space  programme  and consultations being held in this regard at various levels in the Govt.

(ii)  HFL: The  Govt.  on  27.10.2016  has  given  'in principle' approval for strategic disinvestment of HFL with the parent company (HOCL) to exit the firm  completely. Time line for implementing the strategic disinvestment is one year from the date of decision.

HOCL, HFL and HIL are commercial organizations and measures necessary for their promotions and growth are taken by them as per their respective business and operational requirements. However, their performance is also reviewed by the Department from time to time and appropriate steps are taken to improve their physical and financial performance.

## Department of Pharmaceuticals:-

In this Department, Karnataka Antibiotics and Pharmaceuticals Limited (KAPL) is the only  PSU  which  is  profit  making  and  Indian  Drugs  and  Pharmaceuticals  Limited  (IDPL), Bengal Chemicals and Pharmaceuticals Limited (BCPL), Rajasthan Drugs and Pharmaceuticals Limited (RDPL) & Hindustan Antibiotics Limited (HAL) are sick/loss making. The Government has decided for closure of IDPL and RDPL and strategic sale of BCPL and HAL.

(d)

## Department of Fertilizer

Yes,  Madam.  Direct  Benefit  Transfer  (of  fertilizer  subsidy)  is  a  flagship  programme under  implementation  in  19  districts.  Under  the  proposed  fertilizer  DBT  system,  100% subsidy on various fertilizer grades shall be released to the fertilizer companies instead of the beneficiaries, on the basis of actual sales made by the retailers to the beneficiaries. Sale of all subsidised fertilizers to farmers/buyers will be made through Point of Sale (PoS) devices installed at each retailer shop and the beneficiaries will be identified through Aadhar Card, KCC, Voter Identity Card etc.

No  specific  funds  are  required  in  the  DBT  Scheme  as  this  is  a  modification  in  the method of payment of subsidy. The funds allocated under the existing subsidy schemes will be utilized for payment of subsidy under DBT.

Department of Chemicals and Petrochemicals & Department of Pharmaceuticals

No Flagship Programmes are being run by these Departments.

*****

## MOST IMMEDIATE

## ADMITTED PARLIAMENT QUESTION

F.No. Co-14012/09/2016-Coord Government of India Ministry of Chemicals & Fertilizers Department of Chemicals & Petrochemicals

New Delhi, dated the    March 2017.

## OFFICE MEMORANDUM

Subject:-  Lok  Sabha admitted  unstarred Question  No. 4353  (earlier  diary  no.  19597) for answer on 28.03.2017 regarding Promotion of PSUs.

The  undersigned  is  directed  to  forward  herewith  printed  version  of  admitted Unstarred Question No. 4353 on the above subject and to request all concerned to furnish the requisite material point-wise for framing necessary reply.

2.         It is requested that necessary material may be provided to the section alongwith a soft copy at e-mail address singh.manju@gov.in  by 23.03.2017 (FN) positively.

Encl: As above

To

1.  Director (PC-I) / Dir (CH-II) / Dir (PC-II) / Dir (CH-I) / Dir(Admn.)
2.  Director (PSU) (Shri Neeraj Singhal)

Department of Fertilizers, New Delhi

3.  Director ( Co.ord) (Shri A.K. Chaudhary)

Department of Pharmaceuticals, New Delhi.

(Manju Singh) Section Officer (Coord)

## F.No. Co-14012/09/2017-Coord Government of India Ministry of Chemicals & Fertilizers Department of Chemicals & Petrochemicals

Subject:-  Lok  Sabha  admitted  unstarred  Question  No.  4353  (earlier  diary  no. 19597) for answer on 28.03.2017 regarding Promotion of PSUs.

FR  is  an  OM  No.  H-11021/7/2011-Parl  dated  17 th March  2017  received from  Department  of  Fertilizers  on  the  above  subject.  It  has  been  allocated  to Department of Chemicals and Petrochemicals for co-ordination and submitting the reply to the MOS (C&F)/MCF.

2.       We may forward a copy of this OM to all Divisions in the Deptt. of Chemicals &  Petrochemicals,  D/o  of  Fertilizers,  D/o  Pharmaceuticals  with  the  request  to furnish  the  requisite  information  called  for  therein  alongwith  a  soft  copy  at  e-mail address singh.manju@gov.in to Coordination Section by 23.3.2017 (FN) positively.
3.         An OM is put up for kind consideration please. Sumitted please.