Lok Sabha Question No. 1270 (UNSTARRED), answered on 2019-11-25
Subject: Closure of Companies
Ministry: LABOUR AND EMPLOYMENT
Asked by: Kunwar Danish Ali

## GOVERNMENT OF INDIA

## MINISTRY OF LABOUR AND EMPLOYMENT

## LOK SABHA

UNSTARRED QUESTION NO. 1270

TO BE ANSWERED ON 25.11.2019

## CLOSURE OF COMPANIES

1270. SHRI KUNWAR DANISH ALI:

Will the Minister of LABOUR AND EMPLOYMENT be pleased to state:

- (a)whether it is a fact that there is a huge number of companies shutdown during the last five years in India;
- (b)if so, the details thereof and the reasons therefor;
- (c)the number and details of people who got unemployed due to shutdown of the companies; and
- (d)the steps being taken by the Government for their bread and butter?

## ANSWER

## MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT (SHRI SANTOSH KUMAR GANGWAR)

- (a) to (c): The details of companies' shut down and the workers affected thereon, along with the reasons, for the years 2015 to 2019 are annexed.
- (d): The  interests  of  the  affected  workers  are  protected  through measures  such  as provision of compensation  under the Industrial Disputes Act, 1947. Counseling, Retraining & Redeployment (CRR) scheme  as  a  social  safety  net  to  provide  opportunities  of  self/  wage employment to the employees ( or dependents) of Central Public Sector Enterprises  (CPSEs)  separated  under  VRS/VSS  or  retrenched  due  to closure/  restructuring    of  CPSEs.  CRR  aims to reorient VRS/VSS  optees/ dependents  through  short  duration  skill  development  training  to  enable them to adjust in the new environment and adopt new avocations after their  separation  from  the  CPSEs.  CRR  scheme  is  being  implemented  in collaboration with National Skill Development Corporation (NSDC) under Ministry of Skill Development & Entrepreneurship.

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Annexure referred to in reply to (a) to (c) of Lok Sabha Un-starred Question No. 1270 for 25.11.2019 Cause number of Permanent Closures & Workers Affected thereby during  2014 to 2019

| Causes                                                                        | 2014         | 2014                    | 2015 (Provisional)   | 2015 (Provisional)      | 2016 (Provisional)   | 2016 (Provisional)      | 2017 (Provisional)   | 2017 (Provisional)      | 2018 (Provisional)   | 2018 (Provisional)      | 2019 (January to September) (Provisional)   | 2019 (January to September) (Provisional)   |
|-------------------------------------------------------------------------------|--------------|-------------------------|----------------------|-------------------------|----------------------|-------------------------|----------------------|-------------------------|----------------------|-------------------------|---------------------------------------------|---------------------------------------------|
| Causes                                                                        | No. of Units | No. of Workers Affected | No. of Units         | No. of Workers Affected | No. of Units         | No. of Workers Affected | No. of Units         | No. of Workers Affected | No. of Units         | No. of Workers Affected | No. of Units                                | No. of Workers Affected                     |
| 1                                                                             | 2            | 3                       | 4                    | 5                       | 6                    | 7                       | 8                    | 9                       | 10                   | 11                      | 12                                          | 13                                          |
| Violence                                                                      | -            | -                       | -                    | -                       | -                    | -                       | -                    | -                       | -                    | -                       | -                                           | -                                           |
| Financial Stringency                                                          | 5            | 137                     | 4                    | 230                     | 5                    | 218                     | 6                    | 643                     | 4                    | 430                     | -                                           | -                                           |
| Shortage of Raw Material                                                      | -            | -                       | -                    | -                       | 1                    | 6                       | -                    | -                       | -                    | -                       | -                                           | -                                           |
| Shortage of Power                                                             | -            | -                       | -                    | -                       | -                    | -                       | -                    | -                       | -                    | -                       | -                                           | -                                           |
| Lack of Demand/Accumulation of Stock                                          | 1            | 63                      | -                    | -                       | 2                    | 153                     | 6                    | 50                      | 1                    | 8                       | -                                           | -                                           |
| Completion of Project/Termination of                                          | -            | -                       | -                    | -                       | -                    | -                       | -                    | -                       | -                    | -                       | -                                           | -                                           |
| contract                                                                      | (-)          | (-)                     | (-)                  | (-)                     | (1)                  | (3559)                  | (2)                  | (976)                   | -                    | -                       | -                                           | -                                           |
| Workers Problems/Demand for better amenities                                  | 1            | 9                       | -                    | -                       | 3                    | 15                      | -                    | -                       | -                    | -                       | -                                           | -                                           |
| Land Problem                                                                  | -            | -                       | -                    | -                       | 1                    | 6                       | 1                    | 82                      | -                    | -                       | -                                           | -                                           |
| Increase in Production Cost                                                   | -            | -                       | -                    | -                       | -                    | -                       | -                    | -                       | 2                    | 86                      | -                                           | -                                           |
| Shifting of Premises/Opening of new units                                     | 1            | 8                       | -                    | -                       | -                    | -                       | -                    | -                       | -                    | -                       | -                                           | -                                           |
| Others (suspension of mining license/ cancellation of coal blocks/ illness of | 16           | 3818                    | 7                    | 770                     | 12                   | 1862                    | 7                    | 989                     | -                    | -                       | 1                                           | 45                                          |
| owner )                                                                       | (1)          | (447)                   | (2)                  | (165)                   | (-)                  | (-)                     | (-)                  | (-)                     | (-)                  | (-)                     | (-)                                         | (-)                                         |
| Cause Not Known                                                               | 9            | 244                     | 9                    | 687                     | 3                    | 218                     | -                    | -                       | 1                    | 13                      | -                                           | -                                           |
| TOTAL :                                                                       |              |                         |                      |                         |                      |                         |                      |                         |                      |                         |                                             |                                             |
| State Sphere                                                                  | 33           | 4279                    | 20                   | 1687                    | 27                   | 2478                    | 22                   | 1764                    | 8                    | 537                     | 1                                           | 45                                          |
| Central Sphere                                                                | (1)          | (447)                   | (2)                  | (165)                   | (1)                  | (3559)                  | (-)                  | (976)                   | (-)                  | (-)                     | (-)                                         | (-)                                         |
| Grand Total                                                                   | 34           | 4726                    | 22                   | 1852                    | 27                   | 6037                    | 22                   | 2740                    | 8                    | 537                     | 1                                           | 45                                          |

Note:-  1. The information within brackets relates to Central Sphere.

2. This statement is based on the returns/information received in the Bureau till 15th November, 2019.

Souse : Office of Chief Labour Commissioner (Central) & Labour  Bureau.

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