Lok Sabha Question No. 2303 (UNSTARRED), answered on 2022-08-01
Subject: Revival of PSUs
Ministry: FINANCE
Asked by: Annasaheb Shankar Jolle, Prathap Simha, Umesh G. Jadhav, Sanganna Amarappa Karadi, Jaisiddeshwar Shivacharya Mahaswamiji, L.S. Tejasvi Surya, S. Muniswamy

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF PUBLIC ENTERPRISES

## LOK SABHA

## UNSTARRED QUESTION No. 2303

ANSWERED ON 01.08.2022

## Revival of PSUs

## 2303. SHRI ANNASAHEB SHANKAR JOLLE:

SHRI PRATHAP SIMHA:

DR. UMESH G. JADHAV:

SHRI SANGANNA AMARAPPA:

SHRI SHA.BRA. DR.JAI SIDDESHWAR

SHIVACHARYA MAHASWAMIJI:

SHRI L.S. TEJASVI SURYA:

SHRI S. MUNISWAMY:

Will the Minister of Finance be pleased to state:

- (a) the number of sick, underperforming and under loss industries, Public Sector Undertakings (PSUs) which are fully owned, partially owned or subsidiary of the Government of India and the cost to the Government in continuing to run such establishments;
- (b) the measures taken by the Government to revive the finances of the above establishments;
- (c) the number of such establishments which are being divested;
- (d) the number of applications under process / pending for divestment of such establishments;
- (e) the details of the number and names of industries which are already divested along with the details of the purchasers of such establishments, amount and the year of the purchase; and
- (f) the number of establishments successfully revived by the Government itself, without any divestment or partial divestment along with the details of the names, the loss recovered, time taken therefor and the current status thereof?

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

(a)&(b):  As  per  the  Public  Enterprises  Survey  2020-21,  77  Central  Public  Sector Enterprises (CPSEs) have reported loss during 2020-21. Out of them, 17 CPSEs are fully owned  and  13  are  partially  owned  by  the  Government  of  India.  Besides,  there  are  47 subsidiaries. The total loss of these CPSEs in 2020-21 was Rs.31058.37 crores. The CPSEs function under the administrative control of respective Ministries/Departments. Enterprise specific measures, including for loss making CPSEs, are taken by the respective Boards of

CPSEs  and  their  concerned  administrative  Ministries/Departments  in  terms  of  extant policies and guidelines.

(c) & (d): As per the information received from the Department of Investment and Public Asset Management (DIPAM), the nodal Department for disinvestment and privatization of CPSEs,  the  Government,  since  2016,  has  given  'in-principle'  approval  for  strategic disinvestment  of  35  cases  of  CPSEs  /or  Subsidiaries/  Units/  Joint  Ventures  of  CPSEs. Details  regarding  status  of  35  strategic  disinvestment  cases  are  given  at Annexure I .   Besides, in certain CPSEs, Government carries out minority stake sale 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's interest.

(e): Details regarding completed year-wise strategic disinvestment cases along with details of acquirer and amount received by GoI are given at Annexure-II.

(f): As  per  the extant policies/ guidelines, the concerned  administrative  Ministry/ Department takes enterprise specific measures for revival or otherwise of their CPSEs. The details of in this regard are not maintained by Department of Public Enterprises.

***

## Annexure-I  referred  to  in  part  (c)  &  (d)  of  reply  to  Lok  Sabha  Unstarred  Question No.2303 due for answer on 01.08.2022

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

## a) Ongoing Transactions being processed by DIPAM

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

- $ Transaction completed.

## b) Transactions being processed by respective Administrative Ministries

|   16. | Various Units of India Tourism Development Corporation Limited   |
|-------|------------------------------------------------------------------|
|    17 | Hindustan Antibiotics Limited                                    |
|    18 | Bengal Chemicals &Pharmaceuticals Limited                        |

## c) Transactions held up due to litigation

| 19.   | Karnataka Antibiotics &Pharmaceuticals Limited   |
|-------|--------------------------------------------------|

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

|   20. | Hindustan Fluorocarbons Limited (subsidiary)*                 |
|-------|---------------------------------------------------------------|
|    21 | Scooters India Limited*                                       |
|    22 | Bharat Pumps& Compressors Limited*                            |
|    23 | Hindustan Prefab Limited                                      |
|    24 | Units of Cement Corporation of India Limited (Nayagaon Unit)# |

# Transaction not feasible and the mines are being returned to the State Governments.

## e) Transactions Completed

|   25. | Hindustan Petroleum Corporation Limited                             |
|-------|---------------------------------------------------------------------|
|    26 | Rural Electrification Corporation Limited                           |
|    27 | HSCC(India) Limited                                                 |
|    28 | National Projects construction corporation Limited                  |
|    29 | Dredging Corporation of India Limited                               |
|    30 | THDC India Limited                                                  |
|    31 | North Eastern Electric Power Corporation Limited                    |
|    32 | Kamrajar Port Limited                                               |
|    33 | Air India **                                                        |
|    34 | Neelachal Ispat Nigam Limited (JV of four CPSEs and two State PSEs) |

## f) Under Corporate Insolvency Resolution Process (CIRP) in NCLT

## 35. Hindustan Newsprint Limited (subsidiary)***

- ** Subsidiaries which are now with AIAHL are still to be divested
- *** Resolution Plan of Kerala Industrial Infrastructure Development Corporation (KINFRA) approved by the NCLT, Kochi vide order dated 29.01.2021 is under implementation at present.

## Annexure-II referred to in part (e) of reply to Lok Sabha Unstarred Question No.2303 due for answer on 01.08.2022

## Details of completed transactions as on 27.07.2022

| Year    | CPSE                                                      | Acquirer                                                      | Receipts (in Rs crore)   |
|---------|-----------------------------------------------------------|---------------------------------------------------------------|--------------------------|
| 2017-18 | Hindustan Petroleum Corporation Limited (HPCL)            | ONGC                                                          | 36915.00                 |
| 2018-19 | Rural Electrification Corporation Limited (REC)           | PFC                                                           | 14499.99                 |
| 2018-19 | HSCC (India) Limited                                      | NBCC                                                          | 285.00                   |
| 2018-19 | National Projects Construction Corporation Limited (NPCC) | WAPCOS                                                        | 79.80                    |
| 2018-19 | Dredging Corp. of India Limited (DCIL)                    | Consortium of 4 Major ports                                   | 1049.17                  |
| 2019-20 | Teri Hydro Development Corporation Limited (THDC)         | NTPC                                                          | 7500.00                  |
| 2019-20 | North Eastern Electric Power Corporation Limited (NEEPCO) | NTPC                                                          | 4000.00                  |
| 2019-20 | Kamarajar Port Limited                                    | Chennai Port Trust                                            | 2383.00                  |
| 2021-22 | Air India                                                 | Tata Son's Special Purpose Vehicle M/s Talace Private Limited | 2700.00                  |
| 2022-23 | Neelachal Ispat Nigam Limited (NINL)                      | M/s Tata Steel Long Products Limited                          | 00.00 *                  |
| Total   | Total                                                     |                                                               | 69411.96                 |

***