Lok Sabha Question No. 1567 (UNSTARRED), answered on 2019-02-12
Subject: Loss Making PSUs
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: RAHUL KASWAN, ANIRUDHAN SAMPATH, LAKHAN LAL SAHU

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

## LOK SABHA

## UNSTARRED QUESTION NO.1567 TO BE ANSWERED ON 12.02.2019

## Loss Making PSUs

## 1567: SHRI RAHUL KASWAN, DR. A. SAMPATH  AND SHRI  LAKHAN LAL SAHU:

- Will the Minister of HEAVY INDUSTRIES AND PUBLIC ENTERPRISES be pleased to state: (a)  the  Public  Sector  Undertakings  (PSUs)  running  in  losses  along  with  the  details  of  the losses suffered by such PSUs during each of the last three years and the current year, PSU and State-wise; (b) the reasons for the said losses and the corrective steps taken by the Government thereon; (c) whether the Government proposes to constitute a high level committee to look into it by engaging various stakeholders before the loss making PSUs are earmarked for disinvestment; (d) if so, the details thereof and if not, the reasons therefor; (e) whether the Government proposes to set up more PSUs in the country; and
- (f) if so, the details thereof, State/UT-wise including Chhattisgarh?

## ANSWER

## THE MINISTER OF STATE FOR HEAVY INDUSTRIES AND PUBLIC ENTERPRISES (SHRI BABUL SUPRIYO)

- (a):  As  per  Public  Enterprises  Surveys  for  the  year  2016-17  and  2017-18  laid  in  the Parliament  in  the  respective  years,  52  Central  Public  Sector  Enterprises  (CPSEs)  were incurring  losses  continuously  for  the  last  three  years  i.e.  2015-16,  2016-17  and  2017-18. Enterprise and State-wise details of losses of these loss making CPSEs is given at annex.
- (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.  The  Steps  taken  by  Government  to  revive  loss  making

CPSEs are (a) financial restructuring such as, conversion of loan into equity, waiver of loan and  interest  including  penal  interest,  Government  guarantee  for  raising  loans,  grant  of moratorium  on  payment  of  interest/loan,  (b):  business  restructuring,  such  as,  formation  of joint ventures, merger with another PSE, modernization and improved marketing strategies, human  resources  management  and  entering  into  technology  joint  ventures  or  strategic alliances etc.

(c) and  (d): NITI  Aayog  has  been  mandated  to  identify  the  CPSEs  for  strategic disinvestment.  The  criteria  for  strategic  disinvestment  are  not  based  on  profitability.  NITI Aayog has classified  CPSEs  into  'high  priority'  and  'low  priority'  based  on  (a)  National Security  (b)  Sovereign  function  at  arm's  length,  and  (c)  Market  imperfections  and  public purpose, for the purpose of strategic disinvestment. Disinvestment of the minority stake sale of the CPSEs is being done as per the disinvestment policy of the Government.

(e)  and  (f):  The  decision  to  establish  more  CPSEs  in  the  country  including  in  the  State  of Chhattisgarh is taken by the concerned administrative Ministries / Departments in consultation with various stakeholders and in line with techno-economic feasibility.

*******

Annex

## Annex referred to in part (a) of the reply to Lok Sabha Unstarred Question No. 1567 for reply on 12.02.2019 regarding Loss Making PSUs.

## State-wise  details  of  CPSEs  incurring  losses  continuously  in  the  last  3  years  (2017-18, 2016-17 and 2015-16.

(Rs. in lakh)

| Sl. No   | Name of State/CPSE                                | Continuous Loss   | Continuous Loss   | Continuous Loss   |
|----------|---------------------------------------------------|-------------------|-------------------|-------------------|
| Sl. No   | Name of State/CPSE                                | 2017-18           | 2016-17           | 2015-16           |
|          | Andaman &Nicobar Islands                          |                   |                   |                   |
| 1        | Andaman &Nicobar Isl. Forest &Plant.Dev.Corp.Ltd  | -4970             | -4970             | -4970             |
|          | Andhra Pradesh                                    |                   |                   |                   |
| 2        | Rashtriya Ispat Nigam Ltd.                        | -136901           | -126316           | -160372           |
|          | Assam                                             |                   |                   |                   |
| 3        | Brahamputra Crackers &Polymer Ltd.                | -8039             | -54741            | -27251            |
| 4        | North Eastern Regional Agri. Marketing Corp.Ltd.  | -589              | -589              | -589              |
|          | Bihar                                             |                   |                   |                   |
| 5        | Bharat Wagon &Engg. Co. Ltd.                      | -1434             | -1434             | -1526             |
| 6        | HPCL Biofuels Ltd.                                | -7785             | -3072             | -6137             |
|          | Delhi                                             |                   |                   |                   |
| 7        | Air India Engineering Services Ltd.               | -50516            | -50516            | -40710            |
| 8        | Air India Ltd.                                    | -533774           | -628154           | -383678           |
| 9        | Airline Allied Services Ltd.                      | -24429            | -28806            | -19875            |
| 10       | Bharat Sanchar Nigam Ltd.                         | -799285           | -479321           | -485916           |
| 11       | Fresh &Healthy Enterprises Ltd.                   | -1062             | -1366             | -2591             |
| 12       | Handicrafts &Handloom Exports Corp. of India Ltd. | -2361             | -3053             | -1076             |
| 13       | Hindustan Paper Corporation Ltd.                  | -37014            | -37014            | -37014            |
| 14       | Indian Vaccine Corp. Ltd.                         | -153              | -20               | -208              |
| 15       | Kanti Bijlee Utpadan Nigam Ltd.                   | -18109            | -2195             | -5821             |
| 16       | Mahanagar Telephone Nigam Ltd.                    | -297303           | -294108           | -194755           |
| 17       | NBCC Engineering And Consultancy Ltd.             | -209              | -17               | -8                |
| 18       | P E C Ltd.                                        | -5696             | -9284             | -114202           |
| 19       | Prize Petroleum Company Ltd.                      | -157              | -1495             | -4888             |
| 20       | RITES Infrastructure Services Ltd.                | -10               | -10               | -42               |
| 21       | Steel Authority of India Ltd.                     | -48171            | -283324           | -402144           |
| 22       | TCIL Bina Toll Road Ltd.                          | -511              | -1046             | -1043             |
| 23       | TCIL Lakhnadone Toll Road Ltd.                    | -159              | -464              | -4                |
|          | Haryana                                           |                   |                   |                   |
| 24       | Indian Drugs &Pharmaceuticals Ltd.                | -16894            | -15338            | -16608            |
|          | Jharkhand                                         |                   |                   |                   |
| 25       | Ranchi Ashok Bihar Hotel Corpn. Ltd.              | -215              | -197              | -168              |
|          | Karnataka                                         |                   |                   |                   |
| 26       | BEL-Thales Systems Ltd.                           | -259              | -82               | -245              |

| 27   | HMT Ltd.                                     | -716    | -23949   | -1714   |
|------|----------------------------------------------|---------|----------|---------|
| 28   | HMT Machine Tools Ltd.                       | -12925  | -12759   | -10666  |
| 29   | HMT Watches Ltd.                             | -849    | -20356   | -15557  |
| 30   | ONGC Mangalore Petrochemicals Ltd.           | -44711  | -36619   | -64887  |
| 31   | STCL Ltd.                                    | -65688  | -56269   | -48007  |
|      | Kerala                                       |         |          |         |
| 32   | BHEL Electrical Machines Ltd.                | -602    | -424     | -298    |
| 33   | Fertilizers &Chemicals (Travancore) Ltd.     | -13052  | -26268   | -45219  |
| 34   | Hindustan Newsprint Ltd.                     | -10165  | -6015    | -4361   |
| 35   | HLL Biotech Ltd.                             | -4217   | -481     | -610    |
|      | Maharahashtra                                |         |          |         |
| 36   | Bharat Petro Resources Ltd.                  | -15926  | -20298   | -5589   |
| 37   | Hindustan Organic Chemicals Ltd.             | -19947  | -25557   | -17391  |
| 38   | Hotel Corpn. of India Ltd.                   | -5637   | -5957    | -5776   |
|      | Nagaland                                     |         |          |         |
| 39   | Nagaland Pulp &Paper Company Ltd.            | -1739   | -1739    | -1739   |
|      | Orissa                                       |         |          |         |
| 40   | Utkal Ashok Hotel Corpn. Ltd.                | -78     | -71      | -197    |
|      | Rajasthan                                    |         |          |         |
| 41   | Instrumentation Ltd.                         | -9137   | -9137    | -17050  |
| 42   | Rajasthan Drugs &Pharmaceuticals Ltd.        | -599    | -599     | -599    |
| 43   | Sambhar Salts Ltd.                           | -258    | -855     | -890    |
|      | Tamilnadu                                    |         |          |         |
| 44   | Hindustan Photo Films Manufacturing Co. Ltd. | -291716 | -291716  | -252791 |
| 45   | IDPL (Tamilnadu) Ltd.                        | -239    | -239     | -73     |
|      | Telangana                                    |         |          |         |
| 46   | Hindustan Fluorocarbons Limited              | -77     | -385     | -1111   |
| 47   | HMT Bearings Ltd.                            | -138    | -366     | -809    |
|      | Uttar Pradesh                                |         |          |         |
| 48   | Bharat Pumps &Compressors Ltd.               | -8397   | -8397    | -7506   |
| 49   | British India Corporation Ltd.               | -10498  | -10498   | -9724   |
|      | West Bengal                                  |         |          |         |
| 50   | Birds Jute &Exports Ltd.                     | -485    | -485     | -464    |
| 51   | Burn Standard Company Ltd.                   | -3351   | -3351    | -2837   |
| 52   | The Bisra Stone Lime Company Ltd.            | -1071   | -1773    | -1664   |