Lok Sabha Question No. 3471 (UNSTARRED), answered on 2017-08-08
Subject: Rebate to PSUs
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: GOPAL CHINAYYA SHETTY

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES AND PUBLIC ENTERPRISES DEPARTMENT OF PUBLIC ENTERPRISES

## LOK SABHA

## UNSTARRED QUESTION No. 3471

## TO BE ANSWERED ON 08.08.2017

## Rebate to PSUs

## 3471.     SHRI GOPAL SHETTY:

Will the Minister of HEAVY INDUSTRIES & PUBLIC ENTERPRISES be pleased to state:

- (a) whether despite rebate in excise duty, custom duty and various other rebates and concessions, many public sector undertakings are running in losses;
- (b) if so, the details thereof; and
- (c)  the  details  of  the  financial  rebates  and  concessions  provided  to  public  sector  undertakings during the last two years, public sector undertaking-wise?

## ANSWER

## THE MINISTER OF STATE FOR HEAVY INDUSTRIES & PUBLIC ENTERPRISES (SHRI BABUL SUPRIYO)

- (a) &  (b):  The  reasons  for  losses  in  Central  Public  Sector  Enterprises  (CPSE)  vary  from enterprise  to  enterprise.  Some  common  reasons  for  losses/sickness  in  CPSEs  are  old  and obsolete plant & machinery, outdated technology, low capacity utilization, low productivity, inefficient  management,  high  interest  burden,  excess  manpower,  high  cost  of  production, weak marketing strategies, lack of business plans, shortage of working capital, etc. A list of CPSEs which have incurred losses during 2015-16 is given in Annexure-A.
- (c): As per information made available by Department of Revenue, indirect taxes levied on goods and services and are finally borne by the end users. However, there are certain concessions which are with reference to certain PSUs. For example:

(i) Kerosene imported by the Indian Oil Corporation Ltd., Hindustan Petroleum Corporation Ltd., Bharat Petroleum Corporation Ltd. and IBP Company Ltd. for ultimate sale through the Public Distribution system attracts nil custom duty.

(ii)  Liquefied  propane  and  butane  mixture,  liquefied  propane,  liquefied  butane  and  liquefied Petroleum    gases    (LPG)  imported  by  the  Indian  Oil  Corporation  Ltd.,  Hindustan  Petroleum Corporation  Ltd.  or  Bharat  Petroleum  Corporation  Ltd.    for  supply  to  household  domestic consumers or to Non-Domestic Exempted Category (NDEC) customers attracts nil customs duty. (iii)  Subbed  polyester  base,  imported  by  M/s  Hindustan  Photo  Films  manufacturing  company Ltd. Udhagamandalam for the manufacture of medical or industrial X-ray films and graphic art films attracts nil customs duty.

(iv) Liquefied  propane  and  Butane  mixture, Liquefied propane, Liquefied Butane  and Liquefied  Petroleum  Gases  (LPG)  for  supply  to  household  domestic  consumers  or  to  NonDomestic  Exempted  Category  (NDEC)  customers  by  the  Indian  Oil  Corporation  Ltd., Hindustan Petroleum attracts nil rate of duty

* * *

## NET LOSS (-) OF LOSS MAKING CPSEs (COGNATE GROUP WISE)

SUB  TOTAL :

(` in

Lakhs)

| S. No.   | Cognate Group / CPSE                            | 2015-16   |
|----------|-------------------------------------------------|-----------|
|          | AGRO BASED INDUSTRIES                           |           |
| 1        | ANDAMAN&NICOBAR ISL. FOREST &PLANT.DEV.CORP.LTD | -4970     |
| 2        | CREDA HPCL BIOFUEL LTD.                         | -715      |
| 3        | HPCL BIOFUELS LTD.                              | -4977     |
| 4        | INDIAN OIL-CREDA BIOFUELS LTD.                  | -19       |
|          | SUB TOTAL :                                     | -10681    |
|          | CRUDE OIL                                       |           |
| 5        | BHARAT PETRO RESOURCES LTD.                     | -5449     |
| 6        | ONGC VIDESH LTD.                                | -209355   |
| 7        | PRIZE PETROLEUM COMPANY LTD.                    | -4887     |
|          | SUB TOTAL :                                     | -219691   |
|          | OTHER MINERALS &METALS                          |           |
| 8        | INDIAN RARE EARTHS LTD.                         | -10451    |
| 9        | J &KMINERAL DEVELOPMENT CORPN. LTD.             | -165      |
| 10       | KIOCL LTD.                                      | -7766     |
| 11       | THE BISRA STONE LIME COMPANY LTD.               | -1617     |
|          | SUB TOTAL :                                     | -19999    |
|          | STEEL                                           |           |
| 12       | RASHTRIYA ISPAT NIGAM LTD.                      | -142064   |
| 13       | STEEL AUTHORITY OF INDIA LTD.                   | -413726   |
|          | SUB TOTAL :                                     | -555790   |
|          | FERTILIZERS                                     |           |
| 14       | FERTILIZERS &CHEMICALS (TRAVANCORE) LTD.        | -45219    |
| 15       | MADRAS FERTILIZERS LTD.                         | -18954    |
|          | SUB TOTAL :                                     | -64173    |
|          | CHEMICALS &PHARMACEUTICALS                      |           |
| 16       | BENGAL CHEMICALS &PHARMACEUTICALS LTD.          | -913      |
| 17       | BHARAT IMMUNOLOGICALS &BIOLOGICALS CORP. LTD.   | -621      |
| 18       | BRAHAMPUTRA CRACKERS &POLYMER LTD.              | -27023    |
| 19       | HINDUSTAN ANTIBIOTICS LTD.                      | -7718     |
| 20       | HINDUSTAN FLUOROCARBONS LIMITED                 | -1111     |
| 21       | HINDUSTAN ORGANIC CHEMICALS LTD.                | -17391    |
| 22       | HLL BIOTECH LTD.                                | -63       |
| 23       | IDPL (TAMILNADU) LTD.                           | -73       |
| 24       | INDIAN DRUGS &PHARMACEUTICALS LTD.              | -16608    |
| 25       | INDIAN MEDICINES &PHARMACEUTICAL CORPN. LTD.    | -332      |
| 26       | ONGC MANGALORE PETROCHEMICALS LTD.              | -87535    |
| 27       | RAJASTHAN DRUGS &PHARMACEUTICALS LTD.           | -599      |

-159987

HEAVY ENGINEERING

| 28   | BHARAT HEAVY ELECTRICALS LTD.                      |           | -91342   |
|------|----------------------------------------------------|-----------|----------|
| 29   | BHARAT WAGON&ENGG. CO. LTD.                        |           | -1526    |
| 30   | BHEL ELECTRICAL MACHINES LTD.                      |           | -298     |
| 31   | BURN STANDARD COMPANY LTD.                         |           | -2837    |
| 32   | HEAVY ENGINEERING CORPN. LTD.                      |           | -14477   |
| 33   | TUNGABHADRA STEEL PRODUCTS LTD.                    |           | -2887    |
|      |                                                    | SUB TOTAL | -113367  |
|      | MEDIUM &LIGHT ENGINEERING                          |           |          |
| 34   | BHARAT PUMPS &COMPRESSORS LTD.                     |           | -7506    |
| 35   | HINDUSTAN CABLES LTD.                              |           | -99412   |
| 36   | HMT BEARINGS LTD.                                  |           | -1777    |
| 37   | HMT CHINAR WATCHES LTD.                            |           | -4905    |
| 38   | HMT LTD.                                           |           | -2474    |
| 39   | HMT MACHINE TOOLS LTD.                             |           | -12164   |
| 40   | HMT WATCHES LTD.                                   |           | -25920   |
| 41   | INSTRUMENTATION LTD.                               |           | -17050   |
| 42   | RICHARDSON &CRUDDAS(1972) LTD.                     |           | -1006    |
|      |                                                    | SUB TOTAL | -172214  |
|      | TRANSPORTATION EQUIPMENT                           |           |          |
| 43   | HOOGHLY DOCK AND PORT ENGINEERS LTD.               |           | -1980    |
|      |                                                    | SUB TOTAL | -1980    |
|      | CONSUMER GOODS                                     |           |          |
| 44   | HINDUSTAN PAPER CORPORATION LTD.                   |           | -37014   |
| 45   | HINDUSTAN PHOTO FILMS MANUFACTURING CO. LTD.       |           | -252791  |
| 46   | HINDUSTAN SALTS LTD.                               |           | -113     |
| 47   | NAGALAND PULP &PAPER COMPANY LTD.                  |           | -1739    |
| 48   | NEPA LTD.                                          |           | -7012    |
| 49   | SAMBHAR SALTS LTD.                                 |           | -890     |
|      |                                                    | SUB TOTAL | -299559  |
|      | TEXTILES                                           |           |          |
| 50   | BIRDS JUTE &EXPORTS LTD.                           |           | -464     |
| 51   | BRITISH INDIA CORPORATION LTD.                     |           | -9724    |
|      | SUB                                                | TOTAL     | -10188   |
|      | POWERGENERATION                                    |           |          |
| 52   | KANTI BIJLEE UTPADAN NIGAM LTD.                    |           | -5820    |
| 53   | NLC TAMIL NADU POWER LTD.                          |           | -16003   |
|      |                                                    | SUB TOTAL | -21823   |
|      | TRADING&MARKETING                                  |           |          |
| 54   | HANDICRAFTS&HANDLOOM EXPORTS CORP. OF INDIA        | LTD.      | -1076    |
| 55   | NORTH EASTERN HANDICRAFTS &HANDLOOMDEV.CORPN. LTD. |           | -196     |
| 56   | NORTH EASTERN REGIONAL AGRI. MARKETING CORP.LTD.   |           | -589     |
| 57   | P E C LTD.                                         |           | -114202  |
| 58   | STCL LTD.                                          |           | -48007   |

## TRANSPORT SERVICES

59 AIR INDIA ENGINEERING SERVICES LTD. -40710 60 AIR INDIA LTD. -383678 61 AIRLINE ALLIED SERVICES LTD. -19875 62 CENTRAL INLAND WATER TRANSPORT CORPN. LTD. -289 63 FRESH & HEALTHY ENTERPRISES LTD. -2603

## SUB  TOTAL : -447155

## CONTRACT & CONSTRUCTION SERVICES

64 PROJECTS & DEVELOPMENT INDIA LTD. -892 65 TCIL BINA TOLL ROAD LTD. -1043

SUB  TOTAL :

INDUSTRIAL DEVEPLOMENT & TECH.CONSULTANCY

SERVICES

66 BROADCAST ENGG. CONSULTANTS INDIA LTD. -622 67 MECON LTD. -16241 68 RITES INFRASTRUCTURE SERVICES LTD. -41

## SUB  TOTAL : -16904

-1935

## TOURIST SERVICES

69 ASSAM ASHOK HOTEL CORPN. LTD. -155 70 HOTEL CORPN. OF INDIA LTD. -5910 71 MADHYA PRADESH ASHOK HOTEL CORPN. LTD. -35 72 PONDICHERRY ASHOK HOTEL CORPN. LTD. -21 73 RANCHI ASHOK BIHAR HOTEL CORPN. LTD. -168 74 UTKAL ASHOK HOTEL CORPN. LTD. -197

SUB  TOTAL :

-6486

FINANCIAL SERVICES

75 INDIAN VACCINE CORP. LTD. -208

SUB  TOTAL :

-208

TELECOMMUNICATION SERVICES

76 BHARAT BROADBAND NETWORK LTD. -843 77 BHARAT SANCHAR NIGAM LTD. -387992 78 MAHANAGAR TELEPHONE NIGAM LTD. -200574

SUB  TOTAL :

-589409

| GRAND TOTAL :   | -2875619   |
|-----------------|------------|

SUB  TOTAL :

## -164070