Lok Sabha Question No. 1884 (UNSTARRED), answered on 2017-03-14
Subject: Loss making CPSUs
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: S.P. MUDDAHANUMEGOWDA, B.V. NAYAK

## GOVERNMENT OF INDIA

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

## LOK SABHA

## UNSTARRED QUESTION No.1884 TO BE ANSWERED ON 14.03.2017

## Loss making CPSUs

## 1884. SHRI S. P. MUDDAHANUME GOWDA AND SHRI B. V. NAIK:

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

- (a)  whether  it  is  a  fact  that  around  a  dozen  Central  Public  Sector  Undertakings  including BHEL are running in losses;
- (b) if so, the details thereof, and the reasons therefor, State-wise;
- (c) the losses and the profits of these CPSUs during the last three years; and
- (d) the effective steps taken/being taken by the Government to make these CPSUs at par or better than the private/MNC players?

## ANSWER

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

## (SHRI BABUL SUPRIYO)

(a)  to  (c):  As  per  available  information,  78  CPSEs  including  BHEL incurred losses during 2015-16. The state-wise details of their profits / losses for the last 3 years are given at Annex. The reasons for losses in CPSEs vary from enterprise to enterprise.  However, some common problems  for  losses  in  CPSEs  include  old  and  obsolete  plant  and  machinery,  outdated technology,  low  capacity  utilization,  excess  manpower,  weak  marketing  strategies,  stiff competition, heavy interest burden, high input cost, resource crunch etc.

- (d):  Performance  improvement  of  CPSEs  is  a  continuous  process.  Enterprise  specific measures are taken by the administrative Ministries / Departments having jurisdiction over the concerned CPSEs and may, inter alia, include business restructuring, modernization and improved  marketing  strategies,  etc.  Financial  and  non-financial  targets  for  the  CPSEs  are

fixed and evaluated through Memorandum of Understandings (MoU). Department of Public Enterprises has issued guidelines for 'Streamlining the mechanism  for revival and restructuring of sick/ incipient sick and weak CPSEs: General principles and mechanism of restructuring''. The administrative Ministries /Departments are expected  to take measures for revival of loss making CPSEs under their administrative control on case to case basis.

*****

Annex Annex referred to in parts (a)  to (c) to Lok Sabha Unstarred Question No. 1884 for

## reply on 14.03.2017 regarding Loss making CPSUs.

## State-wise details of profit / loss of loss making Central Public Sector Enterprises for the last 3 years

(Rs. in lakh)

|         |                                                   | Profit / Loss   | Profit / Loss   | Profit / Loss   |
|---------|---------------------------------------------------|-----------------|-----------------|-----------------|
| Sl. No. | Name of CPSEs / State                             | 2013- 14        | 2014- 15        | 2015- 16        |
|         | ANDAMAN &NICOBAR ISLANDS                          |                 |                 |                 |
| 1       | ANDAMAN &NICOBAR ISL. FOREST & PLANT.DEV.CORP.LTD | -4020           | -4509           | -4970           |
|         | ANDHRA PRADESH                                    |                 |                 |                 |
| 2       | RASHTRIYA ISPAT NIGAM LTD.                        | 36645           | 6238            | - 142064        |
|         | ASSAM                                             |                 |                 |                 |
| 3       | ASSAM ASHOK HOTEL CORPN. LTD.                     | 35              | -119            | -155            |
| 4       | BRAHAMPUTRA CRACKERS &POLYMER LTD.                | 0               | 0               | -27023          |
| 5       | NORTH EASTERN REGIONAL AGRI. MARKETING CORP.LTD.  | -444            | -589            | -589            |
|         | BIHAR                                             |                 |                 |                 |
| 6       | BHARAT WAGON &ENGG. CO. LTD.                      | -667            | -1568           | -1526           |
| 7       | HPCL BIOFUELS LTD.                                | -11588          | -8437           | -4977           |
|         | CHHATTISGARH                                      |                 |                 |                 |
| 8       | CREDA HPCL BIOFUEL LTD.                           | -86             | -507            | -715            |
| 9       | INDIAN OIL-CREDA BIOFUELS LTD.                    | -346            | -1376           | -19             |
|         | DELHI                                             |                 |                 |                 |
| 10      | AIR INDIA ENGINEERING SERVICES LTD.               | 0               | -24257          | -40710          |
| 11      | AIR INDIA LTD.                                    | - 627960        | - 585991        | - 383678        |
| 12      | AIRLINE ALLIED SERVICES LTD.                      | -22122          | -18392          | -19875          |
| 13      | BHARAT BROADBAND NETWORK LTD.                     | 178             | -29             | -843            |
| 14      | BHARAT HEAVY ELECTRICALS LTD.                     | 346078          | 141929          | -91342          |
| 15      | BHARAT SANCHAR NIGAM LTD.                         | - 701976        | - 823409        | - 387992        |
| 16      | FRESH &HEALTHY ENTERPRISES LTD.                   | -3916           | -1447           | -2603           |
| 17      | HANDICRAFTS&HANDLOOM EXPORTS CORP. OF INDIA LTD.  | 169             | 340             | -1076           |

| 18   | HINDUSTAN PAPER CORPORATION LTD.         | -11850   | -33129   | -37014   |
|------|------------------------------------------|----------|----------|----------|
| 19   | INDIAN VACCINE CORP. LTD.                | -165     | -164     | -208     |
| 20   | KANTI BIJLEE UTPADAN NIGAM LTD.          | -54      | 1724     | -5820    |
| 21   | MAHANAGAR TELEPHONE NIGAM LTD.           | 782513   | - 289339 | - 200574 |
| 22   | ONGC VIDESH LTD.                         | 444532   | 190422   | - 209355 |
| 23   | P E C LTD.                               | 71       | -20854   | - 114202 |
| 24   | PRIZE PETROLEUM COMPANY LTD.             | -2281    | 208      | -4887    |
| 25   | RITES INFRASTRUCTURE SERVICES LTD.       | 5        | 10       | -41      |
| 26   | STEEL AUTHORITY OF INDIA LTD.            | 261648   | 209268   | - 413726 |
| 27   | TCIL BINA TOLL ROAD LTD.                 | 0        | -942     | -1043    |
|      | HARYANA                                  |          |          |          |
| 28   | INDIAN DRUGS &PHARMACEUTICALS LTD.       | -17463   | -16721   | -16608   |
|      | JAMMU&KASHMIR                            |          |          |          |
| 29   | HMT CHINAR WATCHES LTD.                  | -5116    | -4905    | -4905    |
| 30   | J &KMINERAL DEVELOPMENT CORPN. LTD.      | -74      | -80      | -165     |
|      | JHARKHAND                                |          |          |          |
| 31   | HEAVY ENGINEERING CORPN. LTD.            | 29931    | -24169   | -14477   |
| 32   | MECON LTD.                               | 4948     | 2027     | -16241   |
| 33   | RANCHI ASHOK BIHAR HOTEL CORPN. LTD.     | -82      | -107     | -168     |
|      | KARNATAKA                                |          |          |          |
| 34   | HMT LTD.                                 | 8721     | -9657    | -2474    |
| 35   | HMT MACHINE TOOLS LTD.                   | -5266    | -13494   | -12164   |
| 36   | HMT WATCHES LTD.                         | -23307   | -25920   | -25920   |
| 37   | KIOCL LTD.                               | 3994     | 3082     | -7766    |
| 38   | ONGC MANGALORE PETROCHEMICALS LTD.       | 0        | 0        | -87535   |
| 39   | STCL LTD.                                | -35252   | -41259   | -48007   |
| 40   | TUNGABHADRA STEEL PRODUCTS LTD.          | -3191    | -2887    | -2887    |
|      | KERALA                                   |          |          |          |
| 41   | BHEL ELECTRICAL MACHINES LTD.            | -106     | -396     | -298     |
| 42   | FERTILIZERS &CHEMICALS (TRAVANCORE) LTD. | -26495   | -39991   | -45219   |
| 43   | HLL BIOTECH LTD.                         | 0        | -7       | -63      |
|      | MADHYA PRADESH                           |          |          |          |
| 44   | MADHYAPRADESH ASHOK HOTEL CORPN. LTD.    | 73       | 5        | -35      |
| 45   | NEPA LTD.                                | 30886    | -4871    | -7012    |
|      | MAHARAHASHTRA                            |          |          |          |
| 46   | BHARAT PETRO RESOURCES LTD.              | -16617   | -3429    | -5449    |
| 47   | HINDUSTAN ANTIBIOTICS LTD.               | -8423    | -7055    | -7718    |
| 48   | HINDUSTAN ORGANIC CHEMICALS LTD.         | -17685   | -21549   | -17391   |
| 49   | HOTEL CORPN. OF INDIA LTD.               | -4047    | -5046    | -5910    |
| 50   | INDIAN RARE EARTHS LTD.                  | 4678     | 67       | -10451   |
| 51   | RICHARDSON& CRUDDAS(1972) LTD.           | -383     | -365     | -1006    |

|    | MEGHALAYA                                                |          |            |            |
|----|----------------------------------------------------------|----------|------------|------------|
| 52 | NORTH EASTERN HANDICRAFTS&HANDLOOM DEV.CORPN. LTD.       | -232     | -440       | -196       |
|    | NAGALAND                                                 |          |            |            |
| 53 | NAGALAND PULP &PAPER COMPANY LTD.                        | -1473    | -1538      | -1739      |
|    | ORISSA                                                   |          |            |            |
| 54 | UTKAL ASHOK HOTEL CORPN. LTD.                            | -59      | -70        | -197       |
|    | PONDICHERRY                                              |          |            |            |
| 55 | PONDICHERRY ASHOK HOTEL CORPN. LTD.                      | -33      | -31        | -21        |
|    | RAJASTHAN                                                |          |            |            |
| 56 | HINDUSTAN SALTS LTD.                                     | 11       | -495       | -113       |
| 57 | INSTRUMENTATION LTD.                                     | -6861    | -14154     | -17050     |
| 58 | RAJASTHAN DRUGS &PHARMACEUTICALS LTD.                    | -1940    | -1976      | -599       |
| 59 | SAMBHAR SALTS LTD.                                       | 44       | -983       | -890       |
|    | TAMILNADU                                                |          |            |            |
| 60 | HINDUSTAN PHOTO FILMS MANUFACTURING CO. LTD.             | - 182042 | - 216436   | - 252791   |
| 61 | IDPL (TAMILNADU) LTD.                                    | -234     | 112        | -73        |
| 62 | MADRAS FERTILIZERS LTD.                                  | 10004    | -13469     | -18954     |
| 63 | NLC TAMIL NADU POWER LTD.                                | 0        | 0          | -16003     |
|    | TELANGANA                                                |          |            |            |
| 64 | HINDUSTAN FLUOROCARBONS LIMITED                          | -2482    | -377       | -1111      |
| 65 | HMT BEARINGS LTD.                                        | -1598    | -1777      | -1777      |
|    | UTTAR PRADESH                                            |          |            |            |
| 66 | BHARAT IMMUNOLOGICALS &BIOLOGICALS CORP. LTD.            | 502      | 155        | -621       |
| 67 | BHARAT PUMPS &COMPRESSORS LTD.                           | -524     | -5504      | -7506      |
| 68 | BRITISH INDIA CORPORATION LTD.                           | -9261    | -9494      | -9724      |
| 69 | BROADCAST ENGG. CONSULTANTS INDIA LTD.                   | 12       | -139       | -622       |
| 70 | PROJECTS &DEVELOPMENT INDIA LTD.                         | 132      | -586       | -892       |
| 71 | UTTARANCHAL INDIAN MEDICINES &PHARMACEUTICAL CORPN. LTD. | 241      | -14        | -332       |
|    | WEST BENGAL                                              |          |            |            |
| 72 | BENGAL CHEMICALS &PHARMACEUTICALS LTD.                   | -3655    | -1732      | -913       |
| 73 | BIRDS JUTE &EXPORTS LTD.                                 | -265     | -585       | -464       |
| 74 | BURN STANDARD COMPANY LTD.                               | -828     | -2466      | -2837      |
| 75 | CENTRAL INLAND WATER TRANSPORT CORPN. LTD.               | 9545     | 887        | -289       |
| 76 | HINDUSTAN CABLES LTD.                                    | -78188   | -93299     | -99412     |
| 77 | HOOGHLY DOCK AND PORT ENGINEERS LTD.                     | 10096    | 248        | -1980      |
| 78 | THE BISRA STONE LIME COMPANY LTD.                        | -1876    | -2727      | -1617      |
|    | Total                                                    | 143159   | - 184853 6 | - 287561 9 |