Lok Sabha Question No. 591 (UNSTARRED), answered on 2019-06-25
Subject: Closure of PSUs
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: Anto  Antony

## GOVERNMENT OF INDIA

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

## LOK SABHA

## UNSTARRED QUESTION No. 591

## TO BE ANSWERED ON 25.06.2019

## Closure of PSUs

## 591. SHRI ANTO ANTONY:

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

- (a) whether  the  Government  is  planning  to  disinvest  or  close  down  more  public  sector undertakings (PSUs) in the country;
- (b) if so, the details thereof, PSU-wise; and
- (c) the major reasons for disinvestment or closing of PSUs?

## ANSWER

## THE MINISTER OF HEAVY INDUSTRIES & PUBLIC ENTERPRISES (SHRI ARVIND GANPAT SAWANT)

(a) & (b):  As per information available with Department of Public Enterprises (DPE), 19 Sick & loss making  Central  Public  Sector  Enterprises  (CPSEs)  have  been  approved  for  closure  by  the Government. Detail of such CPSEs is at Annexure-I. Regarding CPSEs under strategic disinvestment, the Department of Investment and Public Asset Management (DIPAM) has informed that  the  government  has  given  'in-principle'  approval  for  strategic  disinvestment  of  28  CPSEs including Subsidiaries, Units and Joint Ventures with sale of majority stake of Government of India and transfer of management control. A list of such CPSEs including Subsidiaries, Units and Joint Ventures is given at Annexure-II.

(c): The major reasons for closure of a CPSE would include continuous losses/ sub-optimal returns on equity invested by Government, inability to compete in competitive market, etc. As for strategic disinvestment,  DIPAM  being  the  nodal  Department  has  observed  that  in  sectors  where  the competitive  markets  have  come  up  of  age,  the  economic  potential  of  such  entities  engaged  in producing goods and services may be better discovered in the hands of the strategic investors due to various factors, e.g. infusion of capital, technology up-gradation and efficient management practices etc. Besides, the Government would also be able to monetize its investment in CPSEs.

## Annexure-I referred to in part (a) & (b) of reply to Lok Sabha Unstarred Question No.591 due for answer on 25.06.2019

## List of 19 loss making CPSEs approved for closure by the Government.

| Sl. No.   | Name of the Ministry/ Department/ CPSE                                                                                   | Date of Government approval   |
|-----------|--------------------------------------------------------------------------------------------------------------------------|-------------------------------|
|           | Department of Heavy Industry                                                                                             |                               |
| 1         | Tungabhadra Steel Products Ltd.                                                                                          | 22.12.2015                    |
| 2         | HMT Watches Ltd.                                                                                                         | 6.1.2016                      |
| 3         | HMT Chinnar Watches Ltd.                                                                                                 | 6.1.2016                      |
| 4         | HMT Bearings Ltd.                                                                                                        | 6.1.2016                      |
| 5         | Hindustan Cables Ltd.                                                                                                    | 28.9.2016                     |
| 6         | Tractor Unit of HMT Ltd.                                                                                                 | 27.10.2016                    |
| 7         | Kota Unit of Instrumentation Ltd.                                                                                        | 30.11.2016                    |
|           | Ministry of Shipping                                                                                                     |                               |
| 8         | Central Inland Water Transport Corporation Ltd.                                                                          | 31.8.2016                     |
|           | Department of Pharmaceuticals                                                                                            |                               |
| 9         | Indian Drugs and Pharmaceuticals Ltd.                                                                                    | 28.12.2016                    |
| 10        | Rajasthan Drugs and Pharmaceuticals Ltd                                                                                  | 28.12.2016                    |
|           | Ministry of Petroleum &Natural Gas                                                                                       |                               |
| 11        | IOCL-CREDA Biofuels Ltd.                                                                                                 | 22.3.2017                     |
| 12        | CREDIA HPCL Biofuels Ltd.                                                                                                | 22.3.2017                     |
|           | M/o Environment, Forest and Climate Change                                                                               |                               |
| 13        | Andaman &Nicobar Islands Forest and Plantation Development Corporation Ltd., Port Blair                                  | 16.8.2017                     |
|           | Ministry of Railways                                                                                                     |                               |
| 14        | Bharat Wagon and Engineering Company Ltd.                                                                                | 23.8.2017                     |
| 15        | Burn Standard Company Ltd.                                                                                               | 4.4.2018                      |
|           | Department of Chemicals &Petrochemicals                                                                                  |                               |
| 16        | Closing down the operations of all the plants at Rasayani unit of Hindustan Organic Chemicals Ltd. except CNA/N2O4 plant | 17.5.2017                     |
|           | Ministry of Textiles                                                                                                     |                               |
| 17        | National Jute Manufactures Corpn. Ltd.                                                                                   | 10.10.2018                    |
| 18        | Birds Jute and Exports Ltd.                                                                                              | 10.10.2018                    |
|           | D/o Commerce                                                                                                             |                               |
| 19        | STCL Ltd.                                                                                                                | 13.8.2013                     |

Annexure-II referred to in part (a) & (b) of reply to Lok Sabha Unstarred Question No.591 due for answer on 25.06.2019

CPSEs, including Subsidiaries, Units and Joint Ventures for which government has given 'in-principle' approval for strategic disinvestment.

1. Project & Development India Ltd.
2. Hindustan Prefab Limited (HPL).
3. Hospital Services Consultancy Ltd. (HSCC)
4. National Project construction corporation (NPCC)
5. Engineering Project (India) Ltd.
6. Bridge and Roof Co. India Ltd.
7. Pawan Hans Ltd.
8. Alloy Steel Plant, Durgapur of SAIL
9. Hindustan Newsprint Ltd(subsidiary)
10. Scooters India Limited
11. Bharat Pumps & Compressors Ltd
12. Hindustan Fluorocarbon Ltd. (HFL) (sub.)
13. Central Electronics Ltd
14. Bharat Earth Movers Ltd. (BEML)
15. Ferro Scrap Nigam Ltd.(sub.)
16. Cement Corporation of India Ltd (CCI)
17. Nagarnar Steel Plant of NMDC
18. Salem Steel Plant of SAIL
19. Bhadrawati  units of SAIL
20. Air India and its five subsidiaries and one JV.
21. Dredging Corporation of India Ltd.
22. HLL Lifecare Ltd.
23. Indian Medicine & Pharmaceuticals Corporation Ltd. (IMPCL)
24. Karnataka Antibiotics & Pharmaceuticals Ltd.
25. Kamarajar Port Ltd.
26. Indian Tourism Development Corporation (ITDC) Ltd.
27. Rural Electrification Corporation Limited (REC)
28. Hindustan Petroleum Corporation Limited