Lok Sabha Question No. 946 (UNSTARRED), answered on 2018-07-24
Subject: Revival of Loss Making PSUs
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: P. KUMAR

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

## LOK SABHA

## UNSTARRED QUESTION No. 946

## TO BE ANSWERED ON 24.07.2018

## Revival of Loss Making PSUs

## 946. SHRI P. KUMAR:

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

- (a) whether  the  Government  proposes  to  revive  loss  making  Public  Sector  Undertakings (PSUs);
- (b) if so, the details thereof;
- (c) whether  the  Board  for  Reconstruction  of  Public  Sector  Enterprises  (BRPSEs)  has completed examination of some of the sick Public Sector Undertakings;
- (d) if so, the details thereof along with the names of those Undertakings; and
- (e) the  details  of  recommendations  made  by  BRPSE  and  the  decision  taken  by  the Government thereon?

## ANSWER

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

## (SHRI BABUL SUPRIYO)

(a) &  (b):  Department  of  Public  Enterprises  has  issued  guidelines  on  29.10.2015  for 'Streamlining  the  mechanism  for  revival  and  restructuring  of  sick/  incipient  sick  and  weak Central Public Sector Enterprises (CPSEs): General principles and mechanism of restructuring". As per the guidelines issued on 29.10.2015, the concerned administrative Ministries/ Departments are responsible for monitoring the performance of CPSEs functioning under them and  taking  timely  redressal  measures  for  revival/  restructuring/  disinvestment/  closure  of sick/loss making CPSEs with the approval of the competent authority.

(c)  to  (e):  In  accordance  with  the  decision  of  the  Government  on  7.10.2015,  the  Board  for Reconstruction of Public Sector Enterprises (BRPSE) was wound up on 9 th November 2015. All matters relating to sick/ loss making CPSEs including their revival are dealt by the concerned administrative Ministries/Departments.

During the period of the existence of the erstwhile BRPSE, set up in December, 2004, a total of 68 cases were referred to the Board. Recommendations of the Board were given on 64 cases and 4 cases were remitted to the concerned Ministries/Departments for resubmission. Details of the recommendations of BRPSE are given in Annexure -I.  Based on the recommendations of BRPSE, the details of revival/closure then approved by the Government are at Annexure-II.

* * *

## STATEMENT OF RECOMMENDATIONS OF BRPSE

| Sl. No.   | Name of the Administrative Ministry/Department/ CPSE   | Broad gist of the recommendation of BRPSE                                                                                     |
|-----------|--------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|
|           | Department of Heavy Industry                           |                                                                                                                               |
| 1.        | Hindustan Salts Ltd.                                   | Revival as a PSE                                                                                                              |
| 2.        | Bridge &Roof Co. (India) Ltd.                          | Revival as a PSE                                                                                                              |
| 3.        | BBJ Construction Co. Ltd.                              | Revival as a PSE                                                                                                              |
| 4.        | Tyre Corporation of India Ltd.                         | Revival as a PSE                                                                                                              |
| 5.        | HMT Bearings Ltd.                                      | Revival as a PSE                                                                                                              |
| 6.        | Praga Tools Ltd.                                       | Revival as a PSE                                                                                                              |
| 7.        | NEPA Ltd.                                              | Revival as a PSE                                                                                                              |
| 8.        | Richardson &Cruddas Ltd.                               | Revival through Joint Venture/disinvestment                                                                                   |
| 9.        | Tungabhadra Steel Products Ltd.                        | Revival through Joint Venture/disinvestment                                                                                   |
| 10.       | Bharat Pumps &Compressors Ltd.                         | Revival through Joint Venture/disinvestment                                                                                   |
| 11.       | Cement Corporation of India Ltd.                       | Closure and sale of non-operating Units. Other operating units are revived as a PSE.                                          |
| 12.       | HMT Machine Tools Ltd.                                 | Revival as a PSE                                                                                                              |
| 13.       | Heavy Engineering Corporation Ltd.                     | Revival as a PSE                                                                                                              |
| 14.       | Andrew Yule &Co. Ltd.                                  | Revival as a PSE                                                                                                              |
| 15.       | Instrumentation Ltd.                                   | Revival as a PSE                                                                                                              |
| 16.       | Triveni Structurals Ltd.                               | Revival as a PSE                                                                                                              |
| 17.       | HMT Ltd.                                               | Revival as a PSE                                                                                                              |
| 18.       | HMT Watches Ltd.                                       | Revival as a PSE - Closure of Bangalore unit and transfer of Ranibagh unit to State Government before its closure             |
| 19.       | Bharat Heavy Plate &Vessels Ltd.                       | Revival through financial restructuring &taken over by BHEL                                                                   |
| 20.       | Hindustan Cables Ltd.                                  | Revival through Joint Venture/disinvestment                                                                                   |
| 21.       | HMT Chinar Watches Ltd.                                | Revival through either transferring to State Govt. of J &Kor joint venture with any State / Central Govt. PSU/ Private Sector |
| 22.       | Scooters India Ltd.                                    | Revival through joint venture                                                                                                 |
| 23        | Bharat Ophthalmic Glass Ltd.                           | Closure                                                                                                                       |
| 24        | Bharat Yantra Nigam Ltd.                               | Closure                                                                                                                       |
| 25        | Hindustan Photo Films Manufacturing Company Ltd.       | Closure                                                                                                                       |

| Sl. No.   | Name of the Administrative Ministry/Department/ CPSE                  | Broad gist of the recommendation of BRPSE                           |
|-----------|-----------------------------------------------------------------------|---------------------------------------------------------------------|
|           | Ministry of Textiles                                                  |                                                                     |
| 26        | British India Corporation Ltd.                                        | Revival as a PSE                                                    |
| 27        | National Textiles Corporation Ltd.                                    | Revival of 15 mills as PSE units and 19 mills through Joint Venture |
| 28        | National Jute Manufactures Corporation Ltd.                           | Revival of as a PSE                                                 |
| 29        | Elgin Mills Co. Ltd.                                                  | Revival of Elgin Mill No.2                                          |
|           | Department of Fertilizers                                             |                                                                     |
| 30        | Madras Fertilizers Ltd.                                               | Revival as a PSE                                                    |
| 31        | Fertilizers &Chemicals Travancore Ltd.                                | Revival as a PSE                                                    |
| 32        | Brahmaputra Valley Fertilizer Corporation Ltd. (BVFCL)                | Revival as a PSE                                                    |
|           | Ministry of Shipping                                                  |                                                                     |
| 33        | Central Inland Water Transport Corporation Ltd.                       | Revival through Joint Venture/disinvestment                         |
| 34        | Hooghly Dock &Port Engineers Ltd.                                     | Revival as a PSE                                                    |
|           | Department of Defence Production                                      |                                                                     |
| 35        | Hindustan Shipyard Ltd.                                               | Revival as a PSE                                                    |
|           | Department of Chemicals &Petrochemicals                               |                                                                     |
| 36        | Hindustan Organic Chemicals Ltd.                                      | Revival as a PSE                                                    |
| 37        | Hindustan Insecticides Ltd.                                           | Revival as a PSE                                                    |
| 38        | Hindustan Fluorocarbons Ltd.                                          | Revival as a PSE                                                    |
|           | Department of Pharmaceuticals                                         |                                                                     |
| 39        | Hindustan Antibiotics Ltd.                                            | Revival as a PSE                                                    |
| 40        | Bengal Chemicals &Pharmaceuticals Ltd.                                | Revival as a PSE                                                    |
| 41        | Indian Drugs &Pharmaceuticals Ltd.                                    | Revival as a PSE                                                    |
| 42        | IDPL (Tamil Nadu) Ltd.                                                | Merger with IDPL                                                    |
| 43        | Bihar Drugs &Organic Chemicals Ltd.                                   | Merger with IDPL                                                    |
|           | Ministry of Coal                                                      |                                                                     |
| 44        | Eastern Coalfields Ltd.                                               | Revival as a PSE                                                    |
| 45        | Bharat Coking Coal Ltd.                                               | Revival as a PSE                                                    |
|           | Ministry of Mines                                                     |                                                                     |
| 46        | Mineral Exploration Corporation Ltd.                                  | Revival as a PSE                                                    |
| 47        | Hindustan Copper Ltd.                                                 | Revival as a PSE                                                    |
|           | Department of Scientific &Industrial Research                         |                                                                     |
| 48        | Central Electronics Ltd.                                              | Revival as a PSE                                                    |
|           | Ministry of Water Resources, River Development and Ganga Rejuvenation |                                                                     |
| 49        | National Projects Construction Corporation Ltd.                       | Revival as a PSE                                                    |
|           | Ministry of Steel                                                     |                                                                     |
| 50        | MECON Ltd.                                                            | Revival as a PSE                                                    |
| 51        | Bharat Refractories Ltd.                                              | Revival through financial restructuring &merger with SAIL           |
| 52        | Hindustan Steelworks Construction Ltd.                                | Revival as a PSE                                                    |
|           | Department of Agriculture , Cooperation and Farmers Welfare           |                                                                     |
| 53        | State Farms Corporation of India Ltd.                                 | Revival as a PSE                                                    |
|           | Ministry of Railways                                                  |                                                                     |
| 54        | Konkan Railway Corporation Ltd.                                       | Revival as a PSE                                                    |
| 55        | Bharat Wagon &Engineering Co. Ltd.                                    | Revival as a PSE                                                    |
| 56        | Braithwaite &Company Ltd.                                             | Revival as a PSE                                                    |

| Sl. No.   | Name of the Administrative Ministry/Department/ CPSE                 | Broad gist of the recommendation of BRPSE                                                                                  |
|-----------|----------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------|
| 57        | Burn Standard Company Ltd.                                           | Revival through transfer of two wagon manufacturing units to M/o Railways and transfer of one refractory unit to M/o Steel |
|           | Ministry of Housing &Urban Affairs                                   |                                                                                                                            |
| 58        | Hindustan Prefab Ltd.                                                | Revival as a PSE                                                                                                           |
|           | Ministry of Development of North Eastern Region                      |                                                                                                                            |
| 59        | North Eastern Handicrafts and Handlooms Development Corporation Ltd. | Revival as a PSE                                                                                                           |
|           | Ministry of Information &Broadcasting                                |                                                                                                                            |
| 60        | National Film Development Corporation Ltd.                           | Revival as a PSE                                                                                                           |
|           | Department of Telecommunications                                     |                                                                                                                            |
| 61        | ITI Ltd.                                                             | Revival as a PSE                                                                                                           |
|           | Department of Commerce                                               |                                                                                                                            |
| 62        | STCL Ltd.                                                            | Closure                                                                                                                    |
|           | Ministry of Petroleum &Natural Gas                                   |                                                                                                                            |
| 63        | Biecco Lawrie Ltd.                                                   | Closure                                                                                                                    |
|           | Department of Food &Public Distribution                              |                                                                                                                            |
| 64        | Hindustan Vegetable Oils Corporation Ltd.                            | Closure of Breakfast Food Unit                                                                                             |

## Annex-II referred to in part (c) to (e) of reply to Lok Sabha Unstarred Question No.946 due for answer on 24.7.2018

## LIST OF CPSES APPROVED BY THE GOVERNMENT FOR REVIVAL / CLOSURE BASED ON THE RECOMMENDATIONS OF BRPSE

| S. No.   | Name of the Administrative Ministry/Department/ CPSE   | Broad gist of the Government decision                                                                                                                 |
|----------|--------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|
|          | Department of Heavy Industry                           |                                                                                                                                                       |
| 1        | Hindustan Salts Ltd.                                   | Revival as a PSE. The feasibility of forming a joint venture company for the management of salt factory may also be considered by D/o Heavy Industry. |
| 2        | Bridge &Roof Co. (India) Ltd.                          | Revival as a PSE                                                                                                                                      |
| 3        | BBJ Construction Co. Ltd.                              | Revival as a PSE                                                                                                                                      |
| 4        | HMT Bearings Ltd.                                      | Closure                                                                                                                                               |
| 5        | Praga Tools Ltd.                                       | Revival through financial restructuring and merger with HMT Machine Tools Ltd.                                                                        |
| 6        | Heavy Engineering Corporation Ltd.                     | Revival as a PSE                                                                                                                                      |
| 7        | Cement Corporation of India Ltd.                       | Revival as a PSE. Closure of non-operating units and. Revival of 3 operating units.                                                                   |
| 8        | Richardson &Cruddas(1972) Ltd.                         | Revival through Joint Venture/disinvestment                                                                                                           |
| 9        | Tungabhadra Steel Products Ltd.                        | Closure                                                                                                                                               |
| 10       | Bharat Pumps and Compressors Ltd.                      | Revival as a PSE                                                                                                                                      |
| 11       | HMT Machine Tools Ltd.                                 | Revival through financial restructuring and JV formation with majority shareholding being held by JV partner                                          |
| 12       | Bharat Heavy Plate Vessels Ltd.                        | Revival through financial restructuring& takeover by BHEL                                                                                             |
| 13       | Andrew Yule &Co. Ltd.                                  | Revival as a PSE                                                                                                                                      |
| 14       | Instrumentation Ltd.                                   | Revival as a PSE                                                                                                                                      |
| 15       | Tyre Corporation of India Ltd.                         | Revival through Joint Venture/disinvestment                                                                                                           |
| 16       | NEPA Ltd.                                              | Revival as a PSE                                                                                                                                      |
| 17       | Scooters India Ltd.                                    | Revival as a PSE                                                                                                                                      |
| 18       | HMT Ltd.                                               | Revival as a PSE                                                                                                                                      |
| 19       | Bharat Ophthalmic Glass Ltd.                           | Closure                                                                                                                                               |
| 20       | Bharat Yantra Nigam Ltd.                               | Closure                                                                                                                                               |
| 21       | Hindustan Photo Films Manufacturing Company Ltd.       | Closure                                                                                                                                               |
| 22       | HMT Watches Ltd.                                       | Closure                                                                                                                                               |
| 23       | HMT Chinnar Watches Ltd.                               | Closure                                                                                                                                               |
| 24       | Hindustan Cables Ltd.                                  | Closure                                                                                                                                               |
|          | Ministry of Mines                                      |                                                                                                                                                       |
| 25       | Hindustan Copper Ltd.                                  | Revival as a PSE                                                                                                                                      |
| 26       | Mineral Exploration Corporation Ltd.                   | Revival as a PSE                                                                                                                                      |
|          | Ministry of Shipping                                   |                                                                                                                                                       |
| 27       | Central Inland Water Transport Corporation Ltd.        | Revival through Joint Venture/disinvestment.                                                                                                          |

| 28     | Hooghly Dock &Port Ltd.                                        | Revival through Joint Venture.                                                                                                                                                                                            |
|--------|----------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| S. No. | Engineers Name of the Administrative Ministry/Department/ CPSE | Broad gist of the approval of the Government                                                                                                                                                                              |
|        | Ministry of Defence                                            |                                                                                                                                                                                                                           |
| 29     | Hindustan Shipyard Ltd.                                        | Revival through financial restructuring& transfer from M/o Shipping to M/o Defence                                                                                                                                        |
|        | Ministry of Steel                                              |                                                                                                                                                                                                                           |
| 30     | MECON Ltd.                                                     | Revival as a PSE                                                                                                                                                                                                          |
| 31     | Bharat Refractories Ltd.                                       | Revival through financial restructuring& merger with SAIL                                                                                                                                                                 |
|        | Ministry of Textiles                                           |                                                                                                                                                                                                                           |
| 32     | National Textile Corporation Ltd.                              | Revival as a PSE. Revival of 22 mills as PSE units and handing over 2 mills to Government of Pondicherry.                                                                                                                 |
| 33     | British India Corporation Ltd.                                 | Revival as a PSE                                                                                                                                                                                                          |
| 34     | National Jute Manufactures Corporation Ltd.                    | Running of Kinnison &Khardah in West Bengal and Rai Bahhadur Hadrut Mill, Katihar in Bihar by NJMC and closure of remaining three mills, i.e. National, Union and Alexendra.                                              |
|        | Department of Pharmaceuticals                                  |                                                                                                                                                                                                                           |
| 35     | Hindustan Antibiotics Ltd.                                     | Revival as a PSE                                                                                                                                                                                                          |
| 36     | Bengal Chemicals &Pharmaceuticals Ltd.                         | Revival as a PSE                                                                                                                                                                                                          |
|        | Department of Chemicals& Petrochemicals                        |                                                                                                                                                                                                                           |
| 37     | Hindustan Organic Chemicals Ltd.                               | Revival as a PSE                                                                                                                                                                                                          |
| 38     | Hindustan Fluorocarbons Ltd.                                   | Revival as a PSE by its Holding Company                                                                                                                                                                                   |
| 39     | Hindustan Insecticides Ltd.                                    | Revival as a PSE                                                                                                                                                                                                          |
|        | Department of Fertilizers                                      |                                                                                                                                                                                                                           |
| 40     | Fertilizers &Chemicals (Travancore) Ltd.                       | Revival as a PSE                                                                                                                                                                                                          |
| 41     | Brahmaputra Valley Fertilizer Corpn. Ltd.                      | Financial restructuring and setting up of a new brown field Ammonia-Urea complex at Namrup within the existing premises of BVFCL through Joint Venture                                                                    |
|        | Department of Scientific &Industrial Research                  |                                                                                                                                                                                                                           |
| 42     | Central Electronics Ltd.                                       | Revival as a PSE                                                                                                                                                                                                          |
|        | Department of Agriculture , Cooperation and Farmers Welfare    |                                                                                                                                                                                                                           |
| 43     | State Forms Corporation of India Ltd.                          | Revival as a PSE                                                                                                                                                                                                          |
|        | Ministry of Railways                                           |                                                                                                                                                                                                                           |
| 44     | Konkan Railway Corporation Ltd.                                | Revival as a PSE                                                                                                                                                                                                          |
| 45     | Bharat Wagon &Engineering Company Ltd.                         | Revival through financial restructuring& transfer to M/o Railways                                                                                                                                                         |
| 46     | Braithwaite &Company Ltd.                                      | Revival through financial restructuring& transfer to M/o Railways                                                                                                                                                         |
| 47     | Burn Standard Company Ltd.                                     | Transfer of (i) Refractory unit at Salem to SAIL under M/o Steel and (ii) administrative control of BSCL (excluding Refractory unit at Salem) to M/o Railways on 'as is where is' condition with financial restructuring. |

| S. No.   | Name of the Administrative Ministry/Department/ CPSE                  | Broad gist of the approval of the Government   |
|----------|-----------------------------------------------------------------------|------------------------------------------------|
|          | Ministry of Water Resources, River Development and Ganga Rejuvenation |                                                |
| 48       | National Projects Construction Corporation Ltd.                       | Revival as a PSE                               |
|          | Ministry of Housing &Urban Affairs                                    |                                                |
| 49       | Hindustan Prefab Ltd.                                                 | Revival as a PSE                               |
|          | Ministry of Information &Broadcasting                                 |                                                |
| 50       | National Film Development Corporation Ltd.                            | Revival as a PSE                               |
|          | Ministry of Petroleum &Natural Gas                                    |                                                |
| 51       | Biecco Lawrie Ltd.                                                    | Revival as a PSE                               |
|          | Ministry of Development of North Eastern Region                       |                                                |
| 52       | North Eastern Handicrafts and Handlooms Development Corporation Ltd.  | Revival as a PSE                               |
|          | Department of Telecommunications                                      |                                                |
| 53       | ITI Ltd.                                                              | Revival as a PSE                               |
|          | Ministry of Coal                                                      |                                                |
| 54       | Eastern Coal Fields Ltd.                                              | Revival as a PSE by its Holding Company        |
| 55       | Bharat Coking Coal Ltd.                                               | Revival as a PSE by its Holding Company        |
|          | Department of Commerce                                                |                                                |
| 56       | STCL Ltd.                                                             | Closure                                        |