Lok Sabha Question No. 2469 (UNSTARRED), answered on 2018-01-02
Subject: Loss Making CPSEs
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: VIJAY KUMAR HANSDAK, RAM TAHAL CHOUDHARY

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

## LOK SABHA UNSTARRED QUESTION No. 2469 TO BE ANSWERED ON 02.01.2018

## Loss Making CPSEs

## 2469: SHRI VIJAY KUMAR HANSDAK:

## SHRI RAM TAHAL CHOUDHARY:

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

- (a)  whether  the  Central  Public  Sector  Enterprises  (CPSEs)  are  regularly  incurring losses due to under utilization of capacity;
- (b) if so, the details thereof and the reaction of the Government thereto;
- (c) whether any persons responsible for the said losses has been identified; and
- (d) if so, the details thereof and the action taken against the responsible persons?

## ANSWER

## THE MINISTER OF STATE FOR HEAVY INDUSTRIES AND PUBLIC ENTERPRISES

## (SHRI BABUL SUPRIYO)

- (a)  to  (d):  As  per  Public  Enterprises  Survey  2015-16  that  was  laid  in  the  Parliament  on 21.3.2017, 43 Central Public Sector Enterprises (CPSEs) had incurred losses continuously for last three years i.e. 2013-14, 2014-15 and 2015-16. The details of losses of these CPSEs are given at Annex.

The reasons for the losses are enterprise specific. Some major reasons are resource crunch, low productivity, unsustainable business operations, old and obsolete plant & machinery, outdated  technology,  low  capacity  utilization,  excess  manpower,  lack  of  business  plans, heavy  interest  burden,  high input cost etc. The concerned administrative Ministries / Departments of CPSEs take measures for revival of loss making CPSEs on case to case basis. The day to day and strategic management of CPSEs is handled by the Board of Directors and the respective administrative Ministries. Monitoring and evaluation of the performance of the CPSEs is also done annually through the MoU system.

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## Annex referred to in parts (a) & (b) to Lok Sabha Unstarred Question No. 2469 for reply on 02.01.2018 regarding Loss Making CPSEs.

## Central Public Sector Enterprises making continuously loss for the last 3 years

(Rs. in lakh)

|         |                                                   | Net losses   | Net losses   | Net losses   |
|---------|---------------------------------------------------|--------------|--------------|--------------|
| Sl. No. | Name of CPSEs                                     | 2015-16      | 2014-15      | 2013-14      |
| 1       | Air India Ltd.                                    | -383678      | -585991      | -627960      |
| 2       | Airline Allied Services Ltd.                      | -19875       | -18392       | -22122       |
| 3       | Andaman &Nicobar Isl. Forest &Plant.Dev.Corp.Ltd. | -4970        | -4509        | -4020        |
| 4       | Bengal Chemicals &Pharmaceuticals Ltd.            | -913         | -1732        | -3655        |
| 5       | Bharat Petro Resources Ltd.                       | -5449        | -3429        | -16617       |
| 6       | Bharat Pumps &Compressors Ltd.                    | -7506        | -5504        | -524         |
| 7       | Bharat Sanchar Nigam Ltd.                         | -387992      | -823409      | -701976      |
| 8       | Bharat Wagon &Engg. Co. Ltd.                      | -1526        | -1568        | -667         |
| 9       | BHEL Electrical Machines Ltd.                     | -298         | -396         | -106         |
| 10      | Birds Jute &Exports Ltd.                          | -464         | -585         | -265         |
| 11      | British India Corporation Ltd.                    | -9724        | -9494        | -9261        |
| 12      | Burn Standard Company Ltd.                        | -2837        | -2466        | -828         |
| 13      | CREDA HPCL Biofuel Ltd.                           | -715         | -507         | -86          |
| 14      | Fertilizers &Chemicals (Travancore) Ltd.          | -45219       | -39991       | -26495       |
| 15      | Fresh &Healthy Enterprises Ltd.                   | -2603        | -1447        | -3916        |
| 16      | Hindustan Antibiotics Ltd.                        | -7718        | -7055        | -8423        |
| 17      | Hindustan Cables Ltd.                             | -99412       | -93299       | -78188       |
| 18      | Hindustan Fluorocarbons Limited                   | -1111        | -377         | -2482        |
| 19      | Hindustan Organic Chemicals Ltd.                  | -17391       | -21549       | -17685       |
| 20      | Hindustan Paper Corporation Ltd.                  | -37014       | -33129       | -11850       |
| 21      | Hindustan Photo Films Manufacturing Co. Ltd.      | -252791      | -216436      | -182042      |
| 22      | HMT Bearings Ltd.                                 | -1777        | -1777        | -1598        |
| 23      | HMT Chinar Watches Ltd.                           | -4905        | -4905        | -5116        |
| 24      | HMT Machine Tools Ltd.                            | -12164       | -13494       | -5266        |
| 25      | HMT Watches Ltd.                                  | -25920       | -25920       | -23307       |
| 26      | Hotel Corpn. Of India Ltd.                        | -5910        | -5046        | -4047        |
| 27      | HPCL Biofuels Ltd.                                | -4977        | -8437        | -11588       |
| 28      | Indian Drugs &Pharmaceuticals Ltd.                | -16608       | -16721       | -17463       |

| 29   | Indian Oil-CREDA Biofuels Ltd.                      |      -19 |    -1376 |     -346 |
|------|-----------------------------------------------------|----------|----------|----------|
| 30   | Indian Vaccine Corp. Ltd.                           |     -208 |     -164 |     -165 |
| 31   | Instrumentation Ltd.                                |   -17050 |   -14154 |    -6861 |
| 32   | J &KMineral Development Corpn. Ltd.                 |     -165 |      -80 |      -74 |
| 33   | Nagaland Pulp &Paper Company Ltd.                   |    -1739 |    -1538 |    -1473 |
| 34   | North Eastern Handicrafts& Handloom Dev.Corpn. Ltd. |     -196 |     -440 |     -232 |
| 35   | North Eastern Regional Agri. Marketing Corp.Ltd.    |     -589 |     -589 |     -444 |
| 36   | Pondicherry Ashok Hotel Corpn. Ltd.                 |      -21 |      -31 |      -33 |
| 37   | Rajasthan Drugs &Pharmaceuticals Ltd.               |     -599 |    -1976 |    -1940 |
| 38   | Ranchi Ashok Bihar Hotel Corpn. Ltd.                |     -168 |     -107 |      -82 |
| 39   | Richardson& Cruddas(1972) Ltd.                      |    -1006 |     -365 |     -383 |
| 40   | STCL Ltd.                                           |   -48007 |   -41259 |   -35252 |
| 41   | The Bisra Stone Lime Company Ltd.                   |    -1617 |    -2727 |    -1876 |
| 42   | Tungabhadra Steel Products Ltd.                     |    -2887 |    -2887 |    -3191 |
| 43   | Utkal Ashok Hotel Corpn. Ltd.                       |     -197 |      -70 |      -59 |
|      | Total :                                             | -1435935 | -2015328 | -1839964 |