Lok Sabha Question No. 164 (UNSTARRED), answered on 2021-11-29
Subject: Loss Making PSUs
Ministry: FINANCE
Asked by: P. Velusamy, K. Shanmuga Sundaram

## GOVERNMENT OF INDIA

## MINISTRY OF FINANCE

## DEPARTMENT OF INVESTMENT AND PUBLIC ASSET MANAGEMENT

## LOK SABHA

## UNSTARRED QUESTION NO. 164

## TO BE ANSWERED ON MONDAY, NOVEMBER 29, 2021

Agrahayana 8, 1943 (Saka)

## Loss Making PSUs

## 164.  SHRI VELUSAMY P.: SHRI SHANMUGA SUNDARAM K.:

Will the Minister of FINANCE be pleased to state:

- (a) whether  the  Government  proposes  to  recommend  loss  making  PSUs  identified  for strategic  stake  sale  for  closure  and  will  not  wait  endlessly  and    make  repeated attempts to get a bidder, if so, the details thereof;
- (b) the steps taken by the Government regarding the assets of the PSUs and the fate of the employees in respect of PSUs closed abruptly without any bidder to revive;
- (c) the  number  of  companies  or  PSUs  identified  for  disinvestment  and  the  period  of pending disinvestment; and
- (d) the manner in which the Government will achieve the target of disinvestment?

## ANSWER

## THE MINISTER OF STATE IN MINISTRY OF FINANCE

## (DR. BHAGWAT KISHANRAO KARAD)

(a)  New  Public  Sector  Enterprise  (PSE)  Policy  for  AtmaNirbhar  Bharat  notified  on  4 th February, 2021, has provided outline of the process for deciding strategic sale or closure of PSEs on a case-to-case basis.

(b) The Department of Public Enterprises (DPE) has issued guidelines dated 14 th June, 2018 on closure of CPSEs, which stipulates that the Administrative Ministry/ Department of the CPSE (s) concerned will take steps, inter alia, on matters relating to disposal of movable and

immovable assets and offering VRS/VSS to employees. Copy of the guidelines is available on the official website of DPE (dpe.gov.in).

(c) The government, since 2016, has given 'in-principle' approval for strategic disinvestment of 35 CPSEs and/or Subsidiaries/ Units/ Joint Ventures of CPSEs, a list of which is annexed.

(d) The targets of disinvestment are achieved through transactions in the nature of Strategic Disinvestment of CPSEs, Initial Public Offer (IPO), Offer for Sale (OFS), Buyback of shares of  CPSEs,  etc.  The  execution  and  outcome  of  disinvestment  transactions  depends  on  the prevailing market conditions and investor interest.

***

## Annexure

(Lok Sabha Unstarred Question No. 164 for reply on November 29, 2021)

List of  CPSEs  and/or  Subsidiaries/  Units/  Joint  Ventures  of  CPSEs  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 | Air India and five of its subsidiaries@                                                                                                             |
|   11 | HLL Lifecare Limited                                                                                                                                |
|   12 | Indian Medicines Pharmaceuticals Corporation Limited                                                                                                |
|   13 | (a) Bharat Petroleum Corporation Ltd (except Numaligarh Refinery Limited) (b) BPCL stake in Numaligarh Refinery Limited to a CPSE strategic buyer $ |
|   14 | The Shipping Corporation of India Limited                                                                                                           |
|   15 | Container Corporation of India Limited                                                                                                              |
|   16 | Neelachal Ispat Nigam Limited ( JV of four CPSEs and two State PSEs)                                                                                |
|   17 | Rashtriya Ispat Nigam Ltd.                                                                                                                          |

$ Transaction completed.

## b) 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                        |

## c) Transactions held up due to litigation

|   21. | Hindustan Newsprint Limited (subsidiary)       |
|-------|------------------------------------------------|
|    22 | Karnataka Antibiotics &Pharmaceuticals Limited |

## d) Transactions halted as the CPSEs recommended / approved for closure; or any other reason

|   23. | Hindustan Fluorocarbons Limited (subsidiary)*   |
|-------|-------------------------------------------------|
|    24 | Scooters India Limited*                         |
|    25 | Bharat Pumps &Compressors Limited*              |
|    26 | Hindustan Prefab Limited                        |
|    27 | Units of Cement Corporation of India Limited#   |

## e) Transactions Completed

|   S.No. | Name of CPSE                                       |
|---------|----------------------------------------------------|
|      28 | Hindustan Petroleum Corporation Limited            |
|      29 | Rural Electrification Corporation Limited          |
|      30 | HSCC(India) 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                              |