Lok Sabha Question No. 2332 (UNSTARRED), answered on 2019-12-03
Subject: Loss Making PSUs
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: Sadashiv Kisan Lokhande, Ranjeeta Koli

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

## LOK SABHA

## UNSTARRED QUESTION No. 2332 TO BE ANSWERED ON 03.12.2019

## Loss Making PSUs

## 2332: SHRI  SADASHIV KISAN LOKHANDE AND SHRIMATI RANJEETA KOLI :

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

- (a) whether certain undertakings in the country are running on low revenue and more expenditure basis;
- (b)  if so, the reasons therefor;
- (c) the various efforts made by the Government to address these reasons; and
- (d)  the corrective measures being taken by the Government in this regard?

## ANSWER

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

- (a):    As  per  Public  Enterprises  Survey  2017-18  laid  in  the  both  the  Houses  of  Parliament  on 27.12.2018, there were 52 CPSEs which had low revenue and more expenditure continuously during the three years (2015-16, 2016-17 & 2017-18). A list of such CPSEs is given at annex-I.
- (b):  The reasons for losses differ from CPSE to CPSE. 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.
- (c) and (d): Improvement in the performance of CPSEs is a continuous process. Enterprise specific measures  for their turnaround are taken by the administrative Ministries/Department 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,  Department  of  Public  Enterprises  (DPE)  has issued Guidelines dated 29.10.2015 for 'Streamlining the mechanism for the revival and restructuring of sick/incipient sick and week CPSEs' to be implemented by the administrative Ministries/Department on a case-to-case basis.

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Annex-I Annex referred to in part (a) to Lok Sabha Unstarred Question No. 2332 for reply on 03.12.2019 regarding Loss Making PSUs

| NET LOSS (-) OF LOSSMAKING CPSEs   | NET LOSS (-) OF LOSSMAKING CPSEs                 | NET LOSS (-) OF LOSSMAKING CPSEs   | (Rs. in Lakhs)   | (Rs. in Lakhs)   |
|------------------------------------|--------------------------------------------------|------------------------------------|------------------|------------------|
| S. No.                             | CPSE Name                                        | 2017-18                            | 2016-17          | 2015-16          |
| 1                                  | ANDAMAN &NICOBAR ISL. FOREST &PLANT.DEV.CORP.LTD | -4970                              | -4970            | -4970            |
| 2                                  | HPCL BIOFUELS LTD.                               | -7785                              | -3072            | -6137            |
| 3                                  | BHARAT PETRO RESOURCES LTD.                      | -15926                             | -20298           | -5589            |
| 4                                  | PRIZE PETROLEUM COMPANY LTD.                     | -157                               | -1495            | -4888            |
| 5                                  | THE BISRA STONE LIME COMPANY LTD.                | -1071                              | -1773            | -1664            |
| 6                                  | RASHTRIYA ISPAT NIGAM LTD.                       | -136901                            | -126316          | -160372          |
| 7                                  | STEEL AUTHORITY OF INDIA LTD.                    | -48171                             | -283324          | -402144          |
| 8                                  | FERTILIZERS &CHEMICALS (TRAVANCORE) LTD.         | -12906                             | -26268           | -45219           |
| 9                                  | BRAHAMPUTRA CRACKERS& POLYMER LTD.               | -8039                              | -54741           | -27251           |
| 10                                 | HINDUSTAN FLUOROCARBONS LIMITED                  | -77                                | -385             | -1111            |
| 11                                 | HINDUSTAN ORGANIC CHEMICALS LTD.                 | -20345                             | -25557           | -17391           |
| 12                                 | HLL BIOTECH LTD.                                 | -4217                              | -481             | -610             |
| 13                                 | IDPL (TAMILNADU) LTD.                            | -239                               | -239             | -73              |
| 14                                 | INDIAN DRUGS& PHARMACEUTICALS LTD.               | -16894                             | -15338           | -16608           |
| 15                                 | INDIAN VACCINE CORP. LTD.                        | -153                               | -20              | -208             |
| 16                                 | ONGC MANGALORE PETROCHEMICALS LTD.               | -44711                             | -36619           | -64887           |
| 17                                 | RAJASTHAN DRUGS& PHARMACEUTICALS LTD.            | -599                               | -599             | -599             |
| 18                                 | BEL-THALES SYSTEMS LTD.                          | -259                               | -82              | -245             |
| 19                                 | BHARAT PUMPS &COMPRESSORS LTD.                   | -4392                              | -8397            | -7506            |
| 20                                 | BHARATWAGON &ENGG. CO. LTD.                      | -8015                              | -1434            | -1526            |
| 21                                 | BHEL ELECTRICAL MACHINES LTD.                    | -602                               | -424             | -298             |
| 22                                 | BURN STANDARD COMPANY LTD.                       | -3351                              | -3351            | -2837            |
| 23                                 | HMT BEARINGS LTD.                                | -138                               | -366             | -809             |
| 24                                 | HMT LTD.                                         | -716                               | -23949           | -1714            |
| 25                                 | HMT MACHINE TOOLS LTD.                           | -12925                             | -12759           | -10666           |
| 26                                 | HMT WATCHES LTD.                                 | -849                               | -20356           | -15557           |
| 27                                 | INSTRUMENTATION LTD.                             | -9137                              | -9137            | -17050           |
| 28                                 | HINDUSTAN NEWSPRINT LTD.                         | -10165                             | -6015            | -4361            |
| 29                                 | HINDUSTAN PAPER CORPORATION LTD.                 | -37014                             | -37014           | -37014           |

|   30 | HINDUSTAN PHOTO FILMS MANUFACTURING CO. LTD.      |   -340237 |   -291716 |   -252791 |
|------|---------------------------------------------------|-----------|-----------|-----------|
|   31 | NAGALAND PULP &PAPER COMPANY LTD.                 |     -1739 |     -1739 |     -1739 |
|   32 | SAMBHAR SALTS LTD.                                |      -258 |      -855 |      -890 |
|   33 | BIRDS JUTE &EXPORTS LTD.                          |      -380 |      -485 |      -464 |
|   34 | BRITISH INDIA CORPORATION LTD.                    |    -10620 |    -10498 |     -9724 |
|   35 | KANTI BIJLEE UTPADAN NIGAM LTD.                   |    -18109 |     -2195 |     -5821 |
|   36 | HANDICRAFTS &HANDLOOM EXPORTS CORP. OF INDIA LTD. |     -2361 |     -3053 |     -1076 |
|   37 | NORTH EASTERN REGIONAL AGRI. MARKETING CORP.LTD.  |      -662 |      -589 |      -589 |
|   38 | P E C LTD.                                        |     -5695 |     -9284 |   -114202 |
|   39 | STCL LTD.                                         |    -65688 |    -56269 |    -48007 |
|   40 | AIR INDIA ENGINEERING SERVICES LTD.               |    -49566 |    -51088 |    -40710 |
|   41 | AIR INDIA LTD.                                    |   -533774 |   -628154 |   -383678 |
|   42 | AIRLINE ALLIED SERVICES LTD.                      |    -27133 |    -28806 |    -19875 |
|   43 | FRESH &HEALTHY ENTERPRISES LTD.                   |     -1062 |     -1366 |     -2591 |
|   44 | NBCC ENGINEERING AND CONSULTANCY LTD.             |      -209 |       -17 |        -8 |
|   45 | RITES INFRASTRUCTURE SERVICES LTD.                |       -10 |       -10 |       -42 |
|   46 | TCIL BINA TOLL ROAD LTD.                          |      -511 |     -1046 |     -1043 |
|   47 | TCIL LAKHNADONE TOLL ROAD LTD.                    |      -159 |      -464 |        -4 |
|   48 | HOTEL CORPN. OF INDIA LTD.                        |     -6032 |     -5957 |     -5776 |
|   49 | RANCHI ASHOK BIHAR HOTEL CORPN. LTD.              |      -240 |      -197 |      -168 |
|   50 | UTKAL ASHOK HOTEL CORPN. LTD.                     |       -82 |       -71 |      -197 |
|   51 | BHARAT SANCHAR NIGAM LTD.                         |   -799285 |   -479321 |   -485916 |
|   52 | MAHANAGAR TELEPHONE NIGAM LTD.                    |   -297303 |   -294108 |   -194755 |