Lok Sabha Question No. 1612 (UNSTARRED), answered on 2023-02-13
Subject: Closure/Privatization/Disinvestment of Central Public Sector Enterprises
Ministry: FINANCE
Asked by: Sisir Kumar Adhikari, Dibyendu Adhikari

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF INVESTMENT AND PUBLIC ASSET MANAGEMENT

## LOK SABHA

## UNSTARRED QUESTION NO. 1612

## TO BE ANSWERED ON MONDAY, FEBRUARY 13, 2023

Magha 24, 1994 (Saka)

## Closure/Privatization/Disinvestment of Central Public Sector Enterprises

## 1612.   SHRI SISIR KUMAR ADHIKARI:

## SHRI DIBYENDU ADHIKARI:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government proposes to close or privatize and/or disinvest  the Central PSUs during the next two years and if so, the details thereof;
- (b) the details of Central PSUs that are under the process of closure or privatisation and/or disinvestment, State/UT-wise including West Bengal; and
- (c) whether the Government proposes to modernise and expand capacity of Central PSUs for further development and if so, the details thereof?

## ANSWER

## THE MINISTER OF STATE IN MINISTRY OF FINANCE

## (DR. BHAGWAT KISHANRAO KARAD)

(a)  and  (b)          The  Government,  since  2016,  has  given  'in-principle'  approval  for  strategic disinvestment of 36 cases of PSEs and/or Subsidiaries/ Units/ Joint Ventures of PSEs/ Bank. Out of the 36 cases, 33 cases are being handled by 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 10 cases; 5 PSEs are under consideration for closure; 1 case is held up due to litigation, 1 case is under Corporate

Insolvency  Resolution  Process  (CIRP)  in  NCLT  and  2  transactions  are  under  review  for feasibility.  Remaining 14 transactions are at various stages. Details are given at Annexure-I .

In  other  PSEs,  where  the  Government  continues  to  retain  control,  disinvestment  through minority stake sale is carried out through various SEBI-approved methods such as Initial Public Offer (IPO), Offer for Sale (OFS), Buyback of shares etc. from time to time based on prevailing market conditions and investor interest.

17 CPSEs are under the process of closure, as reported by Department of Public Enterprises. State-wise list of such CPSE/units of CPSEs is given at Annexure-II.

(c)      Modernization and capacity enhancement of Central PSEs are ongoing processes, and steps in this regard are taken from time to time by the CPSEs keeping in view the requirements.

## Annexure to Lok Sabha Unstarred Question No. 1612 for reply on 13.02.2023.

List  of  PSEs  and/or  Subsidiaries/  Units/  Joint  Ventures  of  PSEs  and  Bank  for  which Government has given 'in-principle' approval for strategic disinvestment since 2016.

## 1. Ongoing Transactions being processed by DIPAM

|   S. No. | Name of PSE                                                                                                                                         | State having the Registered Office   |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------|
|        1 | BEML Limited                                                                                                                                        | Karnataka                            |
|        2 | The Shipping Corporation of India Limited                                                                                                           | Maharashtra                          |
|        3 | HLL Lifecare Limited                                                                                                                                | Kerala                               |
|        4 | Project &Development India Limited                                                                                                                  | Uttar Pradesh                        |
|        5 | Ferro Scrap Nigam Limited (subsidiary)                                                                                                              | Chhattisgarh                         |
|        6 | Indian Medicines Pharmaceuticals Corporation Limited                                                                                                | Delhi                                |
|        7 | Container Corporation of India Limited                                                                                                              | New Delhi                            |
|        8 | Rashtriya Ispat Nigam Limited                                                                                                                       | Andhra Pradesh                       |
|        9 | NMDC Steel Limited (NSL)                                                                                                                            | Madhya Pradesh                       |
|       10 | (a) Bharat Petroleum Corporation Ltd (except Numaligarh Refinery Limited)@ (b) BPCL stake in Numaligarh Refinery Limited to a PSE strategic buyer $ | Maharashtra                          |
|       11 | Pawan Hans Limited*                                                                                                                                 | Uttar Pradesh                        |
|       12 | Central Electronics Limited (CEL)##                                                                                                                 | New Delhi                            |
|       13 | Salem Steel Plant; Unit of Steel Authority of India Limited                                                                                         | New Delhi                            |

| 14.   | IDBI Bank   | Maharashtra   |
|-------|-------------|---------------|

- @ EoI process called off due to lack of sufficient Bidder's interest to proceed.
- $ Transaction completed

*Transaction on hold due to legal issues

## Successful bidder disqualified and transaction has been terminated.

## 2. Transactions under respective Administrative Ministries

|   S. No. | Name of PSE                                                    | State having the Registered Office   |
|----------|----------------------------------------------------------------|--------------------------------------|
|       15 | Various Units of India Tourism Development Corporation Limited | New Delhi                            |
|       16 | Hindustan Antibiotics Limited                                  | Maharashtra                          |
|       17 | Bengal Chemicals& Pharmaceuticals Limited                      | West Bengal                          |

## 3. Transactions halted as the PSEs recommended / approved for closure; or any other reason

|   S. No. | Name of PSE                                                    | State having the Registered Office   |
|----------|----------------------------------------------------------------|--------------------------------------|
|       18 | Hindustan Fluorocarbons Limited (subsidiary)**                 | Telangana                            |
|       19 | Scooters India Limited**                                       | Uttar Pradesh                        |
|       20 | Bharat Pumps &Compressors Limited**                            | Delhi                                |
|       21 | Hindustan Prefab Limited                                       | Karnataka                            |
|       22 | Units of Cement Corporation of India Limited (Nayagaon Unit) # | Punjab                               |

## 4. Transactions held up due to litigation

|   S. | Name of PSE                                    | State having the Registered Office   |
|------|------------------------------------------------|--------------------------------------|
|   23 | Karnataka Antibiotics& Pharmaceuticals Limited | Karnataka                            |

## 5. Under Corporate Insolvency Resolution Process (CIRP) in NCLT

|   S. | Name of PSE                                 | State having the Registered Office   |
|------|---------------------------------------------|--------------------------------------|
|   24 | Hindustan Newsprint Limited (subsidiary)*** | Kerala                               |

## 6. Transactions under review for feasibility

|   S. No. | Name of PSE                        | State having the Registered Office   |
|----------|------------------------------------|--------------------------------------|
|       25 | Engineering Projects India Limited | Delhi                                |
|       26 | Bridge &Roof Company Limited       | West Bengal                          |

## 7. Completed Transactions

|   S. No. | PSE                                             | State having the Registered Office   |
|----------|-------------------------------------------------|--------------------------------------|
|       27 | Hindustan Petroleum Corporation Limited (HPCL)  | Mumbai                               |
|       28 | Rural Electrification Corporation Limited (REC) | Haryana                              |
|       29 | HSCC(India) Limited                             | New Delhi                            |

|   30. | National Projects construction corporation Limited (NPCC)   | New Delhi   |
|-------|-------------------------------------------------------------|-------------|
|    31 | Dredging Corporation of India Limited (DCIL)                | New Delhi   |
|    32 | THDC India Limited (THDC)                                   | Uttarakhand |
|    33 | North Eastern Electric Power Corporation Limited (NEEPCO)   | Meghalaya   |
|    34 | Kamrajar Port Limited                                       | Tamil Nadu  |
|    35 | Air India^^                                                 | New Delhi   |
|    36 | Neelachal Ispat Nigam Limited (NINL)                        | Orissa      |

## Annexure to Lok Sabha Unstarred Question No. 1612 for reply on 13.02.2023.

## 1. List of CPSEs which are under the process of closure, as reported by Department of Public Enterprises.

|   Sl. No. | Name of the CPSE                                                                                                            | State having the Registered Office   |
|-----------|-----------------------------------------------------------------------------------------------------------------------------|--------------------------------------|
|         1 | Tungabhadra Steel Products Ltd.                                                                                             | Karnataka.                           |
|         2 | HMT Watches Ltd.                                                                                                            | Karnataka                            |
|         3 | Hindustan Cables Ltd.                                                                                                       | West Bengal                          |
|         4 | Bharat Pumps and Compressors ltd.                                                                                           | Uttar Pradesh                        |
|         5 | Scooters India Ltd.                                                                                                         | Uttar Pradesh                        |
|         6 | Central Inland Water Transport Corporation Ltd.                                                                             | West Bengal                          |
|         7 | Hooghly Dock and Port Engineers Ltd.                                                                                        | West Bengal                          |
|         8 | Indian Drugs and Pharmaceuticals Ltd.                                                                                       | Haryana                              |
|         9 | Rajasthan Drugs and Pharmaceuticals Ltd                                                                                     | Rajasthan                            |
|        10 | Andaman &Nicobar Islands Forest and Plantation Development Corporation Ltd., Port Blair                                     | Andaman& Nicobar                     |
|        11 | Closing down the operations of all the plants at Rasayani unit of Hindustan Organic Chemicals Ltd. except CNA/N 2 O 4 plant | Maharashtra                          |
|        12 | Hindustan Fluorocarbons Ltd.                                                                                                | Telangana                            |
|        13 | National Jute Manufactures Corpn. Ltd.                                                                                      | West Bengal                          |
|        14 | Birds Jute and Exports Ltd.                                                                                                 | West Bengal                          |
|        15 | Handicrafts and Handlooms Export Corpn. of India Ltd.                                                                       | Delhi                                |
|        16 | Vignyan Industries Ltd .                                                                                                    | Karnataka.                           |
|        17 | STCL Ltd.                                                                                                                   | Karnataka.                           |