Lok Sabha Question No. 3224 (UNSTARRED), answered on 2021-08-09
Subject: Loss Making PSEs
Ministry: FINANCE
Asked by: Shardaben Anilbhai Patel, Mitesh Rameshbhai (Bakabhai) Patel

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF PUBLIC ENTERPRISES

## LOK SABHA

## UNSTARRED QUESTION NO. 3224

TO BE ANSWERED ON 09.08.2021

## Loss Making PSEs

## 3224:  Shrimati Shardaben Anilbhai Patel & Shri Mitesh Rameshbhai Patel (Bakabhai):

## Will the Minister of FINANCE:

- (a)  the  details  and  number  of  Public  Sector  Enterprises  (PSEs)  which  are  utilising  their  full capacity and are earning profits from 2016 to 2020;
- (b) the details and number of PSEs incurring losses and details of cumulative loss during the last five years;
- (c) whether there is a proposal to revive such loss incurring PSEs;
- (d) the details and names of PSEs which are likely to be disinvested and the details of total amount earned from such disinvestment; and
- (e) the total number of employees working in loss incurring PSEs?

## ANSWER

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

- (a) The Central Public Sector Enterprises (CPSEs) function under different sectors having varied working conditions and are governed by sectoral rules, regulations and statutes. The capacity utilisation of CPSEs depends on the installed capacity, targeted production and availability of resources.  The number of profit making CPSEs during the period 2016-17 to 2019-20 is given below:
- (b) The number of loss making CPSEs were 79 in 2015-16, 81 in 2016-17; 72 in 2017-18; 69 in 2018-19 and 84 in 2019-20. Out of these, 30 CPSEs were incurring losses continuously with cumulative loss of Rs 1,06,879 Crores.
- (c) CPSEs function under the administrative control of concerned Ministries/Department. All matters  relating  to  CPSEs  including  revival/  restructuring  of  CPSEs  are  decided  by  the

| Year    |   No. of Profit making CPSEs |
|---------|------------------------------|
| 2016-17 |                          175 |
| 2017-18 |                          183 |
| 2018-19 |                          179 |
| 2019-20 |                          171 |

concerned administrative Ministry/ Department on a case to case basis as per the  extant guidelines.

- (d) Department of Investment and Public Asset Management (DIPAM), the nodal Department for disinvestment has informed that 'Disinvestment in Public Sector Enterprises (PSEs) is undertaken as per the extant disinvestment policy of the Government for 'minority stake sale' and 'strategic disinvestment'.

Strategic Disinvestment  implies sale of substantial shareholding of a  PSE  and/or Subsidiaries/  Units/  Joint  Ventures  of  PSEs  along  with  transfer  of  management  control. The  Government  has  'in-principle'  approved  strategic  disinvestment  of  35  PSEs  and/or Subsidiaries/  Units/  Joint  Ventures  of  PSEs  with  sale  of  majority  stake  and  transfer  of management control; list of which is annexed.

In  certain  other  PSEs,  policy  of  minority  stake  sale  without  transfer  of  management control through various SEBI-approved methods, is being followed in order to unlock the value, promote public ownership and higher degree of accountability.

Transaction receipts on successful conclusion of disinvestment transactions depend on the prevailing markets conditions and investors' interest.'

- (e) The  total  number  of  employees  working  in  loss  making  CPSEs  as  on  31.03.2020  was 2,26,814.

*****

## a) Ongoing Transactions

|   SI. No | Name of the CPSE                                                                                                                                                                                    |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        1 | a) Bharat Petroleum Corporation Ltd (except Numaligarh Refinery Limited). (b) BPCL stake in Numaligarh Refinery Limited (NRL) to a CPSE strategic buyer [This transaction (NRL) has been completed] |
|        2 | Air India Limited                                                                                                                                                                                   |
|        3 | The Shipping Corporation of India Limited                                                                                                                                                           |
|        4 | Container Corporation of India Limited                                                                                                                                                              |
|        5 | BEML Limited                                                                                                                                                                                        |
|        6 | Pawan Hans Limited                                                                                                                                                                                  |
|        7 | Neelachal Ispat Nigam limited                                                                                                                                                                       |
|        8 | Project &Development India Limited                                                                                                                                                                  |
|        9 | Engineering Project (India) Limited                                                                                                                                                                 |
|       10 | Bridge and Roof Co. India Limited                                                                                                                                                                   |
|       11 | Units of Cement Corporation of India Limited                                                                                                                                                        |
|       12 | Central Electronics Limited                                                                                                                                                                         |
|       13 | Ferro Scrap Nigam Limited (subsidiary)                                                                                                                                                              |
|       14 | Nagarnar Steel Plant ofNMDC Limited                                                                                                                                                                 |
|       15 | Alloy Steel Plant, Durgapur; Salem Steel Plant; Bhadrawati Steel Plant -units of Steel Authority of India Limited                                                                                   |
|       16 | HLL Lifecare Limited                                                                                                                                                                                |
|       17 | Indian Medicines Pharmaceuticals Corporation Limited                                                                                                                                                |
|       18 | Various Units of India Tourism Development Corporation Limited                                                                                                                                      |
|       19 | Hindustan Antibiotics Limited                                                                                                                                                                       |
|       20 | Bengal Chemicals &Pharmaceuticals Limited                                                                                                                                                           |
|       21 | Rashtriya Ispat Nigam Ltd.                                                                                                                                                                          |

## b) Transactions halted as the CPSEs recommended / approved for closure

|   22. | Hindustan Fluorocarbons Limited (subsidiary)*   |
|-------|-------------------------------------------------|
|    23 | Scooters India Limited*                         |
|    24 | Bharat Pumps &Compressors Limited*              |
|    25 | Hindustan Prefab Limited                        |

## c) Transactions held up due to litigation

|   26 | Hindustan Newsprint Limited (subsidiary)      |
|------|-----------------------------------------------|
|   27 | Kamataka Antibiotics &Pharmaceuticals Limited |

## d) Transactions Completed

|   28 | Hindustan Petroleum Corporation Limited                           |
|------|-------------------------------------------------------------------|
|   29 | Rural Electrification Corporation Limited                         |
|   30 | HSCC(India) Limited Corporation Limited 35. Kamrajar Port Limited |
|   31 | National Projects construction corporation Limited                |
|   32 | Dredging Corporation of India Limited                             |
|   33 | THDC India Limited                                                |
|   34 | North Eastern Electric Power Corporation Limited                  |
|   35 | Kamrajar Port Limited                                             |