Lok Sabha Question No. 2796 (UNSTARRED), answered on 2018-12-28
Subject: Disinvestment of Loss Making PSUs
Ministry: FINANCE
Asked by: RAJAN BABURAO  VICHARE

## GOVERNMENT OF INDIA

## MINISTRY OF FINANCE DEPARTMENT OF INVESTMENT AND PUBLIC ASSET MANAGEMENT

## LOK SABHA UNSTARRED QUESTION NO 2796

TO BE ANSWERED ON 28th December, 2018 Pausha 7,1940 (Saka)

## Disinvestment of Loss Making PSUs

2796. SHRI RAJAN VICHARE:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government has received any list from NITI Aayog regarding the loss making Public Sector Undertakings (PSUs) and if so, the details thereof;
- (b) whether the Government is contemplating to act fast on disinvestment of such loss incurring companies; and
- (c) if so, the details thereof and the names of such loss incurring companies along with the respective amount of losses incurred by them during each of the last four years and the time by which the above said procedure is likely to be finalized by the Government?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PON.RADHAKRISHNAN)

- (a) (b) & (c) On the basis of the recommendation of NITI Aayog Government has given 'in principle' approval for strategic disinvestment of 24 CPSEs which includes 07 loss making CPSEs (as on 31-03-2018). However, the criteria for identification of CPSEs for Strategic Disinvestment is not based on profitability. 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 CPSEs falling under "low priority" are covered for strategic disinvestment.

List of 07 loss making CPSEs, along with the respective amount of losses incurred by them during each of the last four years, is enclosed at Annexure-I. The completion of the process depends on the complexities involved in the transactions, on case to case basis.

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Amount of losses incurred by seven CPSEs which are undergoing strategic disinvestment, during the last four years (Lok Sabha Unstarred Question No. 2796 regarding Disinvestment of Loss Making PSUs, for answer on 28.12.2018).

| SI. NO.   | CPSE                                        | PAT (in cr.)                | PAT (in cr.)   | PAT (in cr.)   | PAT (in cr.)   |
|-----------|---------------------------------------------|-----------------------------|----------------|----------------|----------------|
| SI. 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)(H NL)   | (-)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.                              | Accounts not yet published. | -3951.65       | -3836.78       | (-)5859.91     |