Lok Sabha Question No. 572 (UNSTARRED), answered on 2019-06-25
Subject: Revival of Sick PSUs
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: Shivkumar Chanabasappa Udasi

## LOK SABHA

## UNSTARRED QUESTION No.572

## TO BE ANSWERED ON 25.6.2019

## Revival of Sick PSUs

## 572. SHRI SHIVAKUMAR C. UDASI:

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

- (a) the number of sick Public Sector Undertakings (PSUs) and the strength of employees therein in the country at present;
- (b)  whether  the  Government  has  any  scheme  or  action  plan  to  protect  sick  Public  Sector Undertakings (PSUs) and for revival/ rejuvenation of PSUs/industrial units which have been closed down;
- (c)  if  so,  the  details  thereof  along  with  the  PSUs/industrial  units  where  revival  plan  is  being implemented, State and location-wise; and
- (d)  the  action  taken/being  taken  by  the  Government  to  provide  means  of  livelihood  to  the workers employed in the sick/closed down PSUs?

## ANSWER

## THE MINISTER OF HEAVY INDUSTRIES & PUBLIC ENTERPRISES

## (SHRI ARVIND GANPAT SAWANT)

(a)  &  (b):  Department  of  Public  Enterprises  (DPE)  has  issued  guidelines  for  revival  and restructuring  of  sick/  incipient  sick  and  weak  Central  Public  Sector  Enterprises  (CPSEs)  on 29.10.2015 to be followed and implemented by the administrative Ministries /Departments. As per the guidelines, the administrative Ministries/ Departments shall monitor the performance of CPSEs functioning under them and classify them into sick, incipient sick and weak CPSEs. The guidelines provide that a CPSE would be considered sick if it meets one of the following criteria:

- (i) If it is declared sick as per the provisions of the Companies Act, 2013.
- (ii) If its net worth is negative.

As per information available in the Public Enterprises Survey 2017-18 that was laid on the Table of both the Houses of Parliament on 27.12.2018, the CPSEs having negative networth as on 31.3.2018 along with the number of employees in such CPSEs are given in Annex-I.

Further, as the CPSEs function under the administrative control of concerned Ministries/ Departments, all matters relating to revival/ restructuring/disinvestment including closure of sick CPSEs and revival/ rejuvenation of closed CPSEs/ units of CPSEs are dealt by the concerned administrative Ministry/ Department on a case-to-case basis.

(c): As  per the information available with DPE,  Government  has  approved  revival/ restructuring/merger  plans  for  6  sick/  loss  making  CPSEs,  namely,  (i)  Brahmaputra  Valley Fertilizer  Corpn.  Ltd.,  (ii)  Hindustan  Steelwork  Construction  Ltd.,  (iii)  Richardson  &Cruddas Ltd. (iv) NEPA Ltd., (v) Hooghly Printing Company Ltd. and (vi) Konkan Railway Corporation Ltd.  Detail of such CPSEs is given in Annex-II. Further, Department of Fertilizers has informed that Government of India is reviving 5 closed fertilizer plants of Fertilizer Corporation of India Ltd. (FCIL) and Hindustan Fertilizer Corporation Ltd. (HFCL) namely Talcher, Ramagundam, Gorakhpur and Sindri plants of FCIL and Barauni plant of HFCL by setting up new Ammonia Urea plants of 12.7 lakh metric tonnes per annum capacity. The detail in this regard is also given in Annex-II.

(d): The  employees  of  CPSEs  which  are  being  closed  are  entitled  to  compensation  as  per VRS/VSS guidelines of DPE. The revised guidelines for time bound closure of sick /loss making CPSEs  issued  by  DPE  on  14.6.2018,  inter  alia,  provide  for  payment  of  VRS/VSS  at  2007 notional pay scale to employees of CPSEs under closure irrespective of the existing pay scales of the company.

Further, Government  is  implementing  Counseling,  Retraining  &  Redeployment  (CRR) Scheme  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. The scheme aims to provide short duration skill development training programmes to equip the beneficiaries for self/ wage employment.

****

## List of CPSEs having negative networth as on 31.3.2018

| Sr. No.   | Name of the Ministry/ Department/ CPSE             | Net Worth as on 31.3.2018 (Rs. In lakhs)   | No. of Employees   |
|-----------|----------------------------------------------------|--------------------------------------------|--------------------|
|           | D/O CHEMICALS &PETROCHEMICALS                      |                                            |                    |
| 1         | HINDUSTAN FLUOROCARBONS LIMITED                    | -6184                                      | 140                |
| 2         | HINDUSTAN ORGANIC CHEMICALS LTD.                   | -106146                                    | 470                |
|           | D/O FERTILIZER                                     |                                            |                    |
| 3         | FERTILIZERS &CHEMICALS (TRAVANCORE) LTD.           | -169579                                    | 1963               |
| 4         | MADRAS FERTILIZERS LTD.                            | -49203                                     | 632                |
|           | D/O PHARMACEUTICALS                                |                                            |                    |
| 5         | BENGAL CHEMICALS &PHARMACEUTICALS LTD.             | -9204                                      | 248                |
| 6         | HINDUSTAN ANTIBIOTICS LTD.                         | -35860                                     | 972                |
| 7         | IDPL (TAMILNADU) LTD.                              | -2563                                      | 112                |
| 8         | INDIAN DRUGS &PHARMACEUTICALS LTD.                 | -753450                                    | 28                 |
| 9         | ORISSA DRUGS &CHEMICALS LTD.                       | -1343                                      | 40                 |
| 10        | RAJASTHAN DRUGS &PHARMACEUTICALS LTD.              | -1285                                      | 160                |
|           | MINISTRY OF CIVIL AVIATION                         |                                            |                    |
| 11        | AIR INDIA ENGINEERING SERVICES LTD.                | -113978                                    | 4440               |
| 12        | AIR INDIA EXPRESS LTD.                             | -91329                                     | 1241               |
| 13        | AIR INDIA LTD.                                     | -2489371                                   | 11827              |
| 14        | AIRLINE ALLIED SERVICES LTD.                       | -165415                                    | 602                |
| 15        | HOTEL CORPN. OF INDIA LTD.                         | -24252                                     | 740                |
|           | MINISTRY OF COAL                                   |                                            |                    |
| 16        | BHARAT COKING COAL LTD.                            | -42882                                     | 48747              |
|           | D/OCOMMERCE                                        |                                            |                    |
| 17        | P E C LTD.                                         | -113391                                    | 110                |
| 18        | STCL LTD.                                          | -456405                                    | 11                 |
|           | D/O TELECOMMUNICATIONS                             |                                            |                    |
| 19        | I T I LTD.                                         | -90887                                     | 3576               |
| 20        | MAHANAGAR TELEPHONE NIGAM LTD.                     | -633735                                    | 25191              |
| 21        | TCIL BINA TOLL ROAD LTD.                           | -1585                                      | 30                 |
|           | D/O DEFENCE PRODUCTION                             |                                            |                    |
| 22        | HINDUSTAN SHIPYARD LTD.                            | -61944                                     | 1178               |
|           | MINISTRY OF DEVELOPMENT OF NORTH EASTERN REGION    |                                            |                    |
| 23        | NORTH EASTERN HANDICRAFTS&HANDLOOM DEV.CORPN. LTD. | -247                                       | 56                 |
| 24        | NORTH EASTERN REGIONAL AGRI. MARKETING CORP.LTD.   | -1716                                      | 50                 |
| 25        | ANDAMAN &NICOBAR ISL. FOREST& PLANT.DEV.CORP.LTD   | -32310                                     | 929                |

|    | D/O HEAVY INDUSTRIES                             |          |        |
|----|--------------------------------------------------|----------|--------|
| 26 | BHARAT PUMPS &COMPRESSORS LTD.                   | -10921   | 391    |
| 27 | BHEL ELECTRICAL MACHINES LTD.                    | -825     | 168    |
| 28 | HINDUSTAN CABLES LTD.                            | -567313  | 0      |
| 29 | HINDUSTAN NEWSPRINT LTD.                         | -78      | 450    |
| 30 | HINDUSTAN PAPER CORPORATION LTD.                 | -31354   | 1840   |
| 31 | HINDUSTAN PHOTO FILMS MANUFACTURING CO. LTD.     | -2033003 | 170    |
| 32 | HMT BEARINGS LTD.                                | -12387   | 0      |
| 33 | HMT CHINAR WATCHES LTD.                          | -59372   | 0      |
| 34 | HMT MACHINE TOOLS LTD.                           | -119188  | 1426   |
| 35 | HMT WATCHES LTD.                                 | -287402  | 145    |
| 36 | HOOGHLY PRINTING COMPANY LTD.                    | -45      | 43     |
| 37 | INSTRUMENTATION LTD.                             | -66670   | 712    |
| 38 | NAGALAND PULP &PAPER COMPANY LTD.                | -7954    | 181    |
| 39 | NEPA LTD.                                        | -1929    | 705    |
| 40 | RICHARDSON &CRUDDAS(1972) LTD.                   | -28909   | 11     |
| 41 | SAMBHAR SALTS LTD.                               | -3324    | 110    |
| 42 | TUNGABHADRA STEEL PRODUCTS LTD.                  | -6093    | 0      |
|    | MINISTRY OF HOUSING &URBANAFFAIRS                |          |        |
| 43 | NBCC ENGINEERING AND CONSULTANCY LTD.            | -134     | 21     |
|    | MINISTRY OF PETROLEUM&NATURAL GAS                |          |        |
| 44 | HPCL BIOFUELS LTD.                               | -3909    | 736    |
|    | MINISTRY OF RAILWAYS                             |          |        |
| 45 | BHARATWAGON &ENGG. CO. LTD.                      | -1768    | 60     |
| 46 | BURN STANDARD COMPANY LTD.                       | -10756   | 525    |
| 47 | FRESH &HEALTHY ENTERPRISES LTD.                  | -1810    | 4      |
| 48 | RITES INFRASTRUCTURE SERVICES LTD.               | -58      | 0      |
|    | MINISTRY OF SHIPPING                             |          |        |
| 49 | HOOGHLY DOCK AND PORT ENGINEERS LTD.             | -10453   | 45     |
|    | MINISTRY OF STEEL                                |          |        |
| 50 | THE BISRA STONE LIME COMPANY LTD.                | -11639   | 724    |
|    | MINISTRY OF TEXTILES                             |          |        |
| 51 | BIRDS JUTE &EXPORTS LTD.                         | -12244   | 0      |
| 52 | BRITISH INDIA CORPORATION LTD.                   | -80909   | 1209   |
| 53 | HANDICRAFTS &HANDLOOMEXPORTS CORP. OF INDIA LTD. | -4093    | 95     |
| 54 | NATIONAL JUTE MANUFACTURES CORPORATION LTD.      | -23704   | 0      |
|    | MINISTRY OF TOURISM                              |          |        |
| 55 | RANCHI ASHOK BIHAR HOTEL CORPN. LTD.             | -699     | 32     |
| 56 | UTKAL ASHOK HOTEL CORPN. LTD.                    | -2405    | 0      |
|    | Total                                            |          | 113296 |

## Annexure-II referred to in part (c) of reply to Lok Sabha Unstarred Question No.572 due for answer on 25.6.2019

| Sl. No.   | Name of the Ministry/ Department/ CPSE                                  | Date of approval/ Gist of the approval of the Government                                                                                                                                                              |
|-----------|-------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| A         | CPSEs to which revival/ restructuring/ merger plans approved            |                                                                                                                                                                                                                       |
|           | Department of Fertilizers                                               |                                                                                                                                                                                                                       |
| 1         | Brahmaputra Valley Fertilizer Corpn. Ltd                                | Government approved on 21.5.2015 financial restructuring and setting up of a new brown field Ammonia-Urea complex at Namrup through Joint Venture.                                                                    |
|           | Ministry of Steel                                                       |                                                                                                                                                                                                                       |
| 2         | Hindustan Steelwork Construction Ltd.                                   | Cabinet approved on 25.6.2016 financial restructuring of HSCL and its takeover by NBCC. The company was takenover by NBCC.                                                                                            |
|           | D/o Heavy Industry                                                      |                                                                                                                                                                                                                       |
| 3         | Richardson &Cruddas Ltd.                                                | Cabinet had approved on 9.9.2016 inter alia financial restructuring to come out of the purview of BIFR, strategic disinvestment of Nagpur and Chennai units, etc.                                                     |
| 4         | NEPA Ltd.                                                               | CCEA approved on 3.10.2018 budgetary support for Revival and Mill Development Plan(RMDP), pending salary dues, statutory dues, VRS and thereafter on completion of RMDP, the company will be disinvestment.           |
| 5         | Hooghly Printing Company Ltd.                                           | CCEA approved on 19.9.2018 closure of business operations of HPCL and its merger with the holding company, Andrew Yule Company Ltd.                                                                                   |
|           | Ministry of Railways                                                    |                                                                                                                                                                                                                       |
| 6         | Konkan Railway Corporation Ltd.                                         | CCEA approved on 15.12.2017 2 ND financial restructuring proposal of KRCL in the form of conversion of redeemable preference shares of the Government into convertible preference shares to remain networth positive. |
| B         | Revival of closed CPSEs/ units of CPSEs under Department of Fertilizers | Revival of closed CPSEs/ units of CPSEs under Department of Fertilizers                                                                                                                                               |
| 1         | Fertilizer Corporation of India Ltd.                                    |                                                                                                                                                                                                                       |
|           | Name of Fertilizer Plant                                                | Name of the location & State where plant is located                                                                                                                                                                   |
| 1.1       | Talcher Fertilizer Ltd.                                                 | Talcher, Odisha                                                                                                                                                                                                       |
| 1.2       | Ramagundam Fertilizers &Chemicals Ltd.                                  | Ramagundam, Telangana                                                                                                                                                                                                 |
| 1.3       | Hindustan Urvarak &Rasayan Ltd.                                         | Gorakhpur, Uttar Pradesh                                                                                                                                                                                              |
| 1.4       | Hindustan Urvarak &Rasayan Ltd.                                         | Sindri, Jharkhand                                                                                                                                                                                                     |
| 2         | Hindustan Fertilizer Corporation Ltd.                                   |                                                                                                                                                                                                                       |
| 2.1       | Hindustan Urvarak &Rasayan Ltd.                                         | Barauni, Bihar                                                                                                                                                                                                        |