Lok Sabha Question No. 1946 (UNSTARRED), answered on 2020-03-03
Subject: Revival of Sick PSUs
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: Pratima Bhoumik

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

## LOK SABHA

## UNSTARRED QUESTION No. 1946

## TO BE ANSWERED ON 03.03.2020

## Revival of Sick PSUs

## 1946. MS. PRATIMA BHOUMIK:

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

- (a) whether  the  Government  has  any  scheme  or  plans  for  revival/rejuvenation  of  sick  Public Sector Undertakings (PSUs)/industrial units which have been closed down;
- (b) if so, the details thereof indicating the details of the PSUs/industrial units where revival plan is being implemented, State and location-wise; and
- (c) 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 PRAKASH JAVADEKAR)

(a) & (b): The Department of Public Enterprises (DPE) has issued guidelines for 'revival and restructuring  of  sick/  incipient  sick  and  weak  Central  Public  Sector  Enterprises  (CPSEs): General Principles and Mechanism of Restructuring' on 29 th October, 2015 to be followed and implemented by the administrative Ministries /Departments. 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  in  consultation  with stakeholders and after obtaining the approval of the competent authority, implement the plan.

As  per  the  information  available  with  Department  of  Public  Enterprises  (DPE), Government  has  approved  revival/  restructuring/merger  plans  for  8  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., (vi) Konkan Railway  Corporation  Ltd,  (vii)  Mahanagar  Telecom  Nigam  Ltd.  and  (viii)  Bharat  Sanchar Nigam  Ltd.  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  each.  The  details  in  this  regard  are  given  in Annex.

(c): The  employees  of  CPSEs  which  are  being  closed  are  entitled  to  compensation  as  per VRS/VSS guidelines of DPE.

Further, Government  is  implementing  Counseling,  Retraining  and  Redeployment (CRR) scheme for employees of CPSEs who have been released under VRS / VSS. These separated  employees  or  dependent  their  of  have  opportunity  of  short  duration  skill trainings under the CRR scheme for self / wage employment.

****

## Annexure referred to in part (a) & (b) of reply to Lok Sabha Unstarred Question No.1946 due for answer on 03.03.2020.

| Sl. No.   | Name of the CPSE/Location of the Registered Office(State)               | Date / Gist of the approval of the Government                                                                                                                                                                         |
|-----------|-------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| A         | CPSEs to which revival/ restructuring/ merger plans have been approved  | CPSEs to which revival/ restructuring/ merger plans have been approved                                                                                                                                                |
| 1         | Brahmaputra Valley Fertilizer Corpn. Ltd., Namrup (Assam)               | Government approved on 21.5.2015 financial restructuring and setting up of a new brown field Ammonia-Urea complex at Namrup through Joint Venture.                                                                    |
| 2         | Hindustan Steelwork Construction Ltd., Kolkata (West Bengal)            | Cabinet approved on 25.6.2016 financial restructuring of HSCL and its takeover by NBCC. The company was takenover by NBCC.                                                                                            |
| 3         | Richardson &Cruddas Ltd. Mumbai (Maharashtra)                           | 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., Nepanagar (Madhya Pradesh                                    | 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., Kolkata (West Bengal)                    | CCEA approved on 19.9.2018 closure of business operations of HPCL and its merger with the holding company, Andrew Yule Company Ltd.                                                                                   |
| 6         | Konkan Railway Corporation Ltd., Navi Mumbai(Maharashtra)               | 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. |
| 7         | Mahanagar Telecom Nigam Ltd., New Delhi                                 | Cabinet approved on 26.10.2019 revival of BSNL and MTNL by reducing employees                                                                                                                                         |
| 8         | Bharat Sanchar Nigam Ltd., New Delhi                                    | cost, administrative allotment of spectrum for 4G services, debt restructuring by raising of sovereign guarantee bonds, monetization of assets and in-principle approval for merger of BSNL and MTNL                  |
| 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.                                    | 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             |