Lok Sabha Question No. 1696 (UNSTARRED), answered on 2019-07-02
Subject: Public Sector Undertakings
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: Subhash Ramrao Bhamre, Sunil Dattatray Tatkare, Amol Ramsing Kolhe, Heena Vijaykumar Gavit, Supriya Sadanand Sule

## MINISTRY OF HEAVY INDUSTRIES AND PUBLIC ENTERPRISES

## GOVERNMENT OF INDIA DEPARTMENT OF PUBLIC ENTERPRISES

## LOK SABHA

## UNSTARRED QUESTION No. 1696

## TO BE ANSWERED ON 02.07.2019

## Public Sector Undertakings

## 1696.  DR. SUBHASH RAMRAO BHAMRE:

SHRI SUNIL DATTATRAY TATKARE:

DR. AMOL RAMSING KOLHE:

DR. HEENA GAVIT:

SHRIMATI SUPRIYA SULE:

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

- (a) the number of sick Public Sector Undertakings (PSUs) that have been closed during the last three years and the current year along with the reasons therefor;
- (b) whether  assets  of  these  PSUs  have  been  valued  and  sold  off  and  if  so,  the  details thereof;
- (c) whether the Government has taken any steps to re-employ the employees of PSUs that are shut down, if so, the details thereof and if not, the reasons therefor;
- (d) the total amount of statutory dues payable to the employees of these PSUs;
- (e) the  number  of  CPSUs  referred  to  the  Board  for  Reconstruction  of  Public  Sector Enterprises ( BRPSEs) for revival;
- (f) whether there is any time-bound action plan for  revival of these units and if so, the details thereof; and
- (g) whether the Government is also considering to infuse capital to some PSUs to enable them to remain as market intervention organizations in public interest  and if so, the details thereof?

## ANSWER

## THE MINISTER OF HEAVY INDUSTRIES & PUBLIC ENTERPRISES

## (SHRI ARVIND GANPAT SAWANT)

(a): As per information available with Department of Public Enterprises (DPE), 19 sick & loss making Central Public Sector Enterprises (CPSEs)/ units of CPSEs have been approved for closure by the Government. Out of these 19 CPSEs/ Units of CPSEs, the process of closure has been completed in respect of 2 CPSEs namely, Indian Oil-CREDA Biofuel Limited and HPCL-CREDA Biofuel  Limited.  The  major  reasons  for  closure  of  a  CPSE  would  include continuous losses/ sub-optimal returns on equity invested by Government, inability to compete in competitive market, etc.

(b) to (d):  CPSEs function under the administrative control of concerned Ministries/Department. As per the guidelines issued by DPE on 14.6.2018 on time bound closure of sick/ loss making CPSEs  and  disposal  of  their  movable  and  immovable  assets,  the  concerned  administrative Ministry/  Department/  CPSE  undertakes  the  valuation  and  sale/  disposal  of  assets  of  CPSE

under closure. Further, CPSEs which have been approved by the government for closure, take requisite steps including about the dues payable to their employees in consultation with their administrative  Ministries/  Departments.    The  data  on  the  valuation  of  assets  for  sale  or information on statutory dues payable to the employees of the CPSEs under closure is available with concerned CPSEs/ Ministries.

In  order  to  provide  opportunities  of  self/  wage  employment  to  the  employees  (or  their dependents)  of  CPSEs  separated  under  Voluntary  Retirement  Scheme  (VRS)/  Voluntary Separation Scheme (VSS) due to closure / restructuring of CPSEs, DPE is implementing the Counseling,  Retraining  &  Redeployment  (CRR)  Scheme.  Further,  the  employees  of  CPSEs which are being closed are entitled to compensation as per VRS/ VSS guidelines of DPE.

(e) & (f):   During the period of existence of the erstwhile Board for Reconstruction of Public Sector  Enterprises  (BRPSE)  i.e.  from  December,  2004  to  November,  2015,  68  cases  were referred  to  it  by  various  administrative  Ministries/  Departments  of  CPSEs.  The  Board  had given  recommendations  on  64  cases  and  remitted  4  cases  to  the  concerned  Ministries/ Departments  for  resubmission.  The  BRPSE  had  recommended  for  revival  in  58  cases  and closure in 6 cases.

Subsequent to the winding up of BRPSE on 9 th November, 2015, DPE has issued guidelines dated  29.10.2015  on  revival/  restructuring  of  CPSEs  which  are  to  be  implemented  by  the concerned administrative ministries/ Departments in respect of the CPSEs functioning under them.

(g):  Central  Public  Sector  Enterprises  (CPSEs)  function  under  the  administrative  control  of their  respective Ministries/Departments. The concerned administrative Ministry/ Department takes action relating to improving the performance and efficiency of CPSEs functioning under them  which  may  include  infusion  of  capital  in  CPSEs  to  enable  them  to  remain  as  market intervention organizations in public interest.

* * *