Lok Sabha Question No. 1846 (UNSTARRED), answered on 2022-03-14
Subject: Revival of PSEs
Ministry: FINANCE
Asked by: Ramya  Haridas

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF PUBLIC ENTERPRISES

## LOK SABHA

## UNSTARRED QUESTION NO. 1846

TO BE ANSWERED ON 14.03.2022

## Revival of PSEs

## 1846 : Ms. RAMYA HARIDAS :

Will the Minister of FINANCE be pleased to state:

- (a)  the  number  of  Public  Sector  Enterprises  (PSEs)  which  are  running  on  full  capacity utilization and are making profits during last five years ;
- (b) the number of PSEs which are running in loss and the cumulative loss made during the said period;
- (c)  whether there is a proposal to revive any of the loss-making companies and if so, the details thereof;
- (d) the names of the PSEs which are likely to be disinvested and the total amount to be made from such disinvestments; and
- (e) the total number of employees working in the loss-making PSEs?

## ANSWER

## THE MINISTER OF STATE FOR FINANCE (DR. BHAGWAT KRISHANRAO KARAD)

- (a) The capacity utilization varies across the various products manufactured by the CPSEs based on the availability of raw materials and demand of the final products. The number of profit making CPSEs during the period 2016-17 to 2020-21 is given in the following table:

| Year    |   No. of Profit making CPSEs |
|---------|------------------------------|
| 2016-17 |                          175 |
| 2017-18 |                          183 |
| 2018-19 |                          178 |
| 2019-20 |                          171 |
| 2020-21 |                          177 |

(b)  The  number  of  CPSEs  which  are  continuously  running  in  losses  during  the  period 2016-17 to 2020-21 is 24 and the cumulative loss of these loss making CPSEs for each year is given below:

| Year                   |   2016-17 |   2017-18 |   2018-19 |   2019-20 |   2020-21 |
|------------------------|-----------|-----------|-----------|-----------|-----------|
| Total Loss (Rs. Crore) |     15060 |     17455 |     28218 |     29226 |     20261 |

(c)  The  Government  has  notified  the  New  Public  Sector  Enterprise  ('PSE')  Policy  in February, 2021 and the CPSEs are to be dealt according to the provisions of the policy.

(d) The  Government,  since 2016, has given 'in-principle' approval for strategic disinvestment of 35 CPSEs and/or Subsidiaries/ Units/ Joint Ventures of CPSEs and IDBI Bank. Out of the 36 cases, 33 are being handled by Department of Investment and Public Asset Management  (DIPAM)  and  3  cases  are being handled by the respective Administrative  Ministry/Department.  Out  of  the  33  cases  being  handled  by  DIPAM, strategic disinvestment transactions have been completed in 9 cases; 5 CPSEs are under consideration for closure; 2 cases are held up due to litigation. Remaining 17 transactions are  at  various  stages.  List  of  ongoing  transactions  is  given  at  Annexure-I.   Besides,  in certain CPSEs, where Government continues to retain control, disinvestment of minority stake  is  made  to  increase  public  participation  through  various  SEBI-approved  methods such as Initial Public Offer (IPO), Offer for Sale (OFS), Buyback of shares and Exchange Traded Funds (ETFs) offers from time to time based on prevailing market conditions and investor's interest.

The  RE  of  disinvestment  receipts  for  FY  2021-22  was  fixed  at  Rs.  78,000  crore.  The Budget  Estimate  for  2022-23  has  been  kept  at  Rs.  65,000  crore,  keeping  in  view  the feasibility of transactions. However, actual realization of disinvestment proceeds depends upon prevailing market conditions, timing of the transaction and investors interest.

(e)  The  total  number  of  regular  employees  working  in  loss  making  CPSEs  as  on 31.03.2021 is 2,68,869.

Annexure referred to in reply to part (d) of Lok Sabha Unstarred Question Number 1846 to be answered on 14.3.2022

## List of CPSEs, including subsidiaries and Units of CPSEs/Organizations for which Government has given 'in-principle' approval for strategic disinvestment since 2016.

## a. Ongoing Transactions being processed by DIPAM

|   1. | Project &Development India Limited                                                                                                                  |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
|    2 | Engineering Project (India) Limited                                                                                                                 |
|    3 | Bridge and Roof Co. India Limited                                                                                                                   |
|    4 | Central Electronics Limited@                                                                                                                        |
|    5 | BEML Limited                                                                                                                                        |
|    6 | Ferro Scrap Nigam Limited (subsidiary)                                                                                                              |
|    7 | Nagarnar Steel Plant of NMDC Limited                                                                                                                |
|    8 | Alloy Steel Plant, Durgapur^; Salem Steel Plant; Bhadrawati Steel Plant - units of Steel Authority of India Limited                                 |
|    9 | Pawan Hans Limited                                                                                                                                  |
|   10 | HLL Lifecare Limited                                                                                                                                |
|   11 | Indian Medicines Pharmaceuticals Corporation Limited                                                                                                |
|   12 | (a) Bharat Petroleum Corporation Ltd (except Numaligarh Refinery Limited) (b) BPCL stake in Numaligarh Refinery Limited to a CPSE strategic buyer $ |
|   13 | The Shipping Corporation of India Limited                                                                                                           |
|   14 | Container Corporation of India Limited                                                                                                              |
|   15 | Neelachal Ispat Nigam Limited@                                                                                                                      |
|   16 | Rashtriya Ispat Nigam Ltd.                                                                                                                          |
|   17 | IDBI Bank Ltd.                                                                                                                                      |

- @ Strategic Buyer selected

## $ Transaction Completed

## b. Ongoing Transactions being processed by respective Administrative Ministries

|   18. | Various Units of India Tourism Development Corporation Limited   |
|-------|------------------------------------------------------------------|
|    19 | Hindustan Antibiotics Limited                                    |
|    20 | Bengal Chemicals &Pharmaceuticals Limited                        |