Lok Sabha Question No. 613 (UNSTARRED), answered on 2019-06-25
Subject: Closure of Loss Making PSUs
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: Adoor Prakash

## LOK SABHA

## UNSTARRED QUESTION No. 613

## TO BE ANSWERED ON 25.06.2019

## Closure of Loss Making PSUs

## 613. ADV. ADOOR PRAKASH :

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

- (a) whether the Government is considering closure/privatization of loss making Public Sector Undertakings (PSUs) and if so, the details thereof;
- (b) whether NITI Aayog has prepared a new list of Public Sector Undertakings (PSUs) for privatization;
- (c) if so, the details thereof and the reasons therefor;
- (d) whether all the PSUs proposed for privatization are making losses; and
- (e) if so, the details thereof along with the profit/loss of such PSUs during the last three years and the currrent year?

## ANSWER

## THE MINISTER OF HEAVY INDUSTRIES & PUBLIC ENTERPRISES

## (SHRI ARVIND GANPAT SAWANT)

(a) to (c) As per information available with DPE, 19 Sick & loss making CPSEs have been approved for closure by the Government. Detail of such CPSEs is at Annexure-I. As regards privatization of CPSEs, Department of Investment and Public Asset Management (DIPAM) has informed that on the basis of the recommendation of NITI Aayog, Government has given 'in principle' approval for strategic disinvestment of 28 CPSEs which includes 07 loss making CPSEs (as on 31-03-2018). A list of CPSEs including Subsidiaries, Units and Joint Ventures for which government has given 'inprinciple'  approval  for  strategic  disinvestment  is  given  at  Annex-II.  NITI  Aayog  has  classified CPSEs into 'high priority' and 'low priority' based on (a) National Security (b) Sovereign function at  arm's  length,  and  (c)  Market  Imperfections  and  Public  Purpose,  for  the  purpose  of  strategic disinvestment. The criteria for identification of  CPSEs for strategic disinvestment is  not  based  on profitability.

(d)  &  (e)  List  of  07  loss  making  CPSEs  under  strategic  disinvestment,  along  with  the  respective amount of losses incurred by them during each of the last four years, is enclosed at Annex-III.

* * *

## Annexure-I  referred  to  in  part  (a)  to  (c)  of  reply  to  Lok  Sabha  Unstarred Question No.613 due for answer on 25.06.2019

## List of 19 loss making CPSEs approved for closure by the Government.

| Sl. No.   | Name of the Ministry/ Department/ CPSE                                                                                      | Date of Government approval   |
|-----------|-----------------------------------------------------------------------------------------------------------------------------|-------------------------------|
|           | Department of Heavy Industry                                                                                                |                               |
| 1         | Tungabhadra Steel Products Ltd.                                                                                             | 22.12.2015                    |
| 2         | HMT Watches Ltd.                                                                                                            | 6.1.2016                      |
| 3         | HMT Chinnar Watches Ltd.                                                                                                    | 6.1.2016                      |
| 4         | HMT Bearings Ltd.                                                                                                           | 6.1.2016                      |
| 5         | Hindustan Cables Ltd.                                                                                                       | 28.9.2016                     |
| 6         | Tractor Unit of HMT Ltd.                                                                                                    | 27.10.2016                    |
| 7         | Kota Unit of Instrumentation Ltd.                                                                                           | 30.11.2016                    |
|           | Ministry of Shipping                                                                                                        |                               |
| 8         | Central Inland Water Transport Corporation Ltd.                                                                             | 31.8.2016                     |
|           | Department of Pharmaceuticals                                                                                               |                               |
| 9         | Indian Drugs and Pharmaceuticals Ltd.                                                                                       | 28.12.2016                    |
| 10        | Rajasthan Drugs and Pharmaceuticals Ltd                                                                                     | 28.12.2016                    |
|           | Ministry of Petroleum &Natural Gas                                                                                          |                               |
| 11        | IOCL-CREDA Biofuels Ltd.                                                                                                    | 22.3.2017                     |
| 12        | CREDIA HPCL Biofuels Ltd.                                                                                                   | 22.3.2017                     |
|           | M/o Environment, Forest and Climate Change                                                                                  |                               |
| 13        | Andaman &Nicobar Islands Forest and Plantation Development Corporation Ltd., Port Blair                                     | 16.8.2017                     |
|           | Ministry of Railways                                                                                                        |                               |
| 14        | Bharat Wagon and Engineering Company Ltd.                                                                                   | 23.8.2017                     |
| 15        | Burn Standard Company Ltd.                                                                                                  | 4.4.2018                      |
|           | Department of Chemicals & Petrochemicals                                                                                    |                               |
| 16        | Closing down the operations of all the plants at Rasayani unit of Hindustan Organic Chemicals Ltd. except CNA/N 2 O 4 plant | 17.5.2017                     |
|           | Ministry of Textiles                                                                                                        |                               |
| 17        | National Jute Manufactures Corpn. Ltd.                                                                                      | 10.10.2018                    |
| 18        | Birds Jute and Exports Ltd.                                                                                                 | 10.10.2018                    |
|           | D/o Commerce                                                                                                                |                               |
| 19        | STCL Ltd.                                                                                                                   | 13.8.2013                     |

## Annexure-II referred to in part (a) to (c) of reply to Lok Sabha Unstarred Question No.613 due for answer on 25.06.2019

CPSEs, including Subsidiaries, Units and Joint Ventures for which government has given 'in-principle' approval for strategic disinvestment.

1. Project & Development India Ltd.
2. Hindustan Prefab Limited (HPL).
3. Hospital Services Consultancy Ltd. (HSCC)
4. National Project construction corporation (NPCC)
5. Engineering Project (India) Ltd.
6. Bridge and Roof Co. India Ltd.
7. Pawan Hans Ltd.
8. Alloy Steel Plant, Durgapur of SAIL
9. Hindustan Newsprint Ltd(subsidiary)
10. Scooters India Limited
11. Bharat Pumps & Compressors Ltd
12. Hindustan Fluorocarbon Ltd. (HFL) (sub.)
13. Central Electronics Ltd
14. Bharat Earth Movers Ltd. (BEML)
15. Ferro Scrap Nigam Ltd.(sub.)
16. Cement Corporation of India Ltd (CCI)
17. Nagarnar Steel Plant of NMDC
18. Salem Steel Plant of SAIL
19. Bhadrawati  units of SAIL
20. Air India and its five subsidiaries and one JV.
21. Dredging Corporation of India Ltd.
22. HLL Lifecare Ltd.
23. Indian Medicine & Pharmaceuticals Corporation Ltd. (IMPCL)
24. Karnataka Antibiotics & Pharmaceuticals Ltd.
25. Kamarajar Port Ltd.
26. Indian Tourism Development Corporation (ITDC) Ltd.
27. Rural Electrification Corporation Limited (REC)
28. Hindustan Petroleum Corporation Limited

## Annexure-III  referred  to  in  part  (d)  &  (e)  of  reply  to  Lok  Sabha  Unstarred  Question No.613 due for answer on 25.06.2019

Amount of losses incurred by seven CPSEs which are undergoing strategic disinvestment, during the last four years.

| Sl. NO.   | CPSE                                        | PAT** (Rs. in cr.)          | PAT** (Rs. in cr.)   | PAT** (Rs. in cr.)   | PAT** (Rs. in cr.)   |
|-----------|---------------------------------------------|-----------------------------|----------------------|----------------------|----------------------|
| Sl. NO.   | CPSE                                        | 2017-18                     | 2016-17              | 2015-16              | 2014-15              |
| 1         | SAIL*                                       | (-)481.71                   | (-)2833.24           | (-)4021.44           | 2092.68              |
| 2         | Hindustan Fluorocarbon Ltd(subsidiary)(HFL) | (-)00.77                    | (-) 4.89             | (-) 11.11            | (-) 3.77             |
| 3         | Bharat Pumps Compressors Ltd.(BPCL)         | Accounts not yet published. | (-)84.47             | (-) 75.06            | (-)55.04             |
| 4         | Scooters India Ltd(SIL)                     | (-)18.62                    | (-) 10.28            | 5.48                 | 11.09                |
| 5         | Hindustan Newsprint Ltd(subsidiary)(HNL)    | (-)101.65                   | (-)60.14             | (-) 43.16            | (-)7.81              |
| 6         | HLL Life Care Ltd.                          | (-)69.58                    | (-) 25.39            | 27.41                | 31.55                |
| 7         | Air India Ltd.                              | --                          | -3951.65             | -3836.78             | (-)5859.91           |