Lok Sabha Question No. 3722 (UNSTARRED), answered on 2020-03-17
Subject: Profit and Loss Making PSUs
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: Bharatiben Dhirubhai Shyal, Queen Oja

## GOVERNMENT OF INDIA

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

## LOK SABHA

## UNSTARRED QUESTION No.3722

TO BE ANSWERED ON 17.03.2020

Profit and Loss Making PSUs

## 3722: DR. BHARATIBEN DHIRUBHAI SHIYAL  AND SHRIMATI QUEEN OJA:

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

- (a) the details of the profit and loss making Public Sector Undertakings (PSUs) during the last five years and the current year;
- (b) whether the Government has conducted any study to find out the reasons behind the loss being incurred by PSUs;
- (c) if so, the details thereof and if not, the reasons therefor; and
- (d) the steps being taken / likely to be taken by the Government to bail out the financial loss making PSUs?

## ANSWER

## THE MINISTER OF HEAVY INDUSTRIES AND PUBLIC ENTERPRISES (SHRI PRAKASH JAVADEKAR)

- (a): Based on the information available in Public Enterprises Surveys, the details of profit / loss making Central Public Sector Enterprises (CPSEs) for the last 5 years is given below:

(Rs. in crore)

| Year    | Profit of profit making CPSEs   | Loss of Loss making CPSEs   |
|---------|---------------------------------|-----------------------------|
| 2014-15 | 130364 (159)                    | 27498 (76)                  |
| 2015-16 | 144991 (164)                    | 30756 (79)                  |
| 2016-17 | 152978 (175)                    | 27480 (78)                  |
| 2017-18 | 155931 (183)                    | 32180 (72)                  |
| 2018-19 | 174587 (178)                    | 31635 (70)                  |

Figures shown in ( ) are number of enterprises.

- (b) & (c): CPSEs function under the administrative control of respective Ministries/Departments. The Board of CPSEs/administrative Ministries continuously monitor

the  performance  of  CPSEs  including  identification  of  reasons  of  losses  of  loss  incurring CPSEs.  However,  some  common  problems  faced  by  loss  making  CPSEs  include  obsolete plants and machinery, heavy interest burden, resource crunch, low capacity utilization, low productivity, surplus manpower, high input cost, non-remunerative prices etc.

(d):  Enterprise  specific  measures  for  their  turnaround  are  taken  by  the  administrative Ministries/Departments  having  jurisdiction  over  the  concerned  CPSEs.  These,  inter  alia, include  business  restructuring,  formation  of  joint  ventures,  modernization  and  improved marketing  strategies,  corporate  governance,  professionalization  of  boards  of  CPSEs  etc. Further, DPE has issued Guidelines dated 29.10.2015 for 'Streamlining the mechanism for the revival and restructuring of sick/incipient sick and loss making CPSEs; General principals and  mechanism  of  restructuring'.  As  per  these  guidelines,  the  administrative  Ministries  / Departments concerned are responsible for monitoring the performance of CPSEs functioning under them and taking timely measures for revival / restructuring of sick/loss making CPSEs on a case-to-case basis.