Lok Sabha Question No. 2993 (UNSTARRED), answered on 2023-03-20
Subject: Privatization of CPSUs
Ministry: FINANCE
Asked by: K. Subbarayan

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

## LOK SABHA

## UNSTARRED QUESTION No. 2993 TO BE ANSWERED ON 20.03.2023

## Privatization of CPSUs

## 2993. SHRI SUBBARAYAN K.:

Will the Minister of FINANCE be pleased to state:

- (a) the number of Central Public Sector Units (CPSUs) opened since 2014;
- (b) the number of CPSUs sold off during this period;
- (c) the number of CPSUs privatized since 2014; and
- (d) the number of CPSUs that are proposed to be privatized during the coming years?

## ANSWER

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

(a):  Central  Public  Sector  Enterprises  (CPSEs)  function  under  the  administrative control of respective  Ministries/Departments. Any decision to set  up new CPSEs is taken by the sectoral line Ministries/Departments after taking into consideration the needs and commercial viability and any extant policy of the Government. DPE does not maintain information with respect to opening of CPSEs centrally. However, as per Public Enterprises  Survey  the  number  of  operating  Central  Public  Sector  Enterprises  (CPSEs)  in 2014-15 was 236 and the number of operating CPSEs in 2021-22 is 248.

(b  to  d):    As  per  the  information  received  from  the  Department  of  Investment  and Public  Asset  Management  (DIPAM),  the  nodal  Department  for  Disinvestment  and privatisation of CPSEs, 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, strategic disinvestment transactions have been completed in 10 cases; out of 10 completed transactions, 8 transactions are in CPSE to CPSE space and only Air India Limited and NINL have been sold to a strategic private partner. The details of these 10 transactions are given at Annexure-I .    The  status  of  the  remaining are  given in Annexure -II.

Disinvestment  is  an  ongoing  process,  and  timing and  completion  of  transactions  are contingent upon economic outlook, sectoral trends, market conditions, investor interest and administrative feasibility.

Government has unveiled a New Public Sector Enterprise (PSE) Policy in February, 2021, which  is  designed  to  discover  true  economic  potential  of  entities  in  the  hands  of  private investors. Under New PSE Policy, public sector commercial enterprises have been classified as Strategic and Non-Strategic sectors. Not for Profit companies, PSEs providing support to vulnerable groups, and PSEs having developmental / promotional roles are exempted from the  New  PSE  Policy.    In  Strategic  sectors,  bare  minimum  presence  of  the  existing  public sector commercial enterprises at Holding Company level will be retained under Government control. The remaining enterprises in a strategic sector, will be considered for privatization or merger /subsidiarization with another PSE or for closure. PSEs in non-strategic sectors shall be considered for privatization, where feasible, otherwise such enterprises shall be considered for closure.

## Annexure-I

|   S. No. | CPSE                                                      | Acquirer                             |
|----------|-----------------------------------------------------------|--------------------------------------|
|        1 | Hindustan Petroleum Corporation Limited (HPCL)            | ONGC                                 |
|        2 | Rural Electrification Corporation Limited (REC)           | PFC                                  |
|        3 | HSCC(India) Limited                                       | NBCC                                 |
|        4 | National Projects construction corporation Limited (NPCC) | WAPCOS                               |
|        5 | Dredging Corporation of India Limited (DCIL)              | Consortium of 4 major ports          |
|        6 | THDC India Limited (THDC)                                 | NTPC                                 |
|        7 | North Eastern Electric Power Corporation Limited (NEEPCO) | NTPC                                 |
|        8 | Kamrajar Port Limited                                     | Chennai Port Trust                   |
|        9 | Air India^^                                               | M/s Talace Pvt. Ltd                  |
|       10 | Neelachal Ispat Nigam Limited (NINL)                      | M/s Tata Steel Long Products Limited |

.

Annexure-II

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                                                                                                                                         |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
|        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 Limited                                                                                                                       |
|        9 | NMDC Steel Limited (NSL)                                                                                                                            |
|       10 | (a) Bharat Petroleum Corporation Ltd (except Numaligarh Refinery Limited)@ (b) BPCL stake in Numaligarh Refinery Limited to a PSE strategic buyer $ |
|       11 | Pawan Hans Limited                                                                                                                                  |
|       12 | Central Electronics Limited (CEL)##                                                                                                                 |
|       13 | Alloy Steel Plant, Durgapur^; Salem Steel Plant; Bhadrawati Steel Plant@ - units of Steel Authority of India Limited                                |
|       14 | IDBI Bank                                                                                                                                           |

## Successful bidder disqualified and transaction has been terminated.

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

|   S. No. | Name of PSE                                                    |
|----------|----------------------------------------------------------------|
|       15 | Hindustan Fluorocarbons Limited (subsidiary)**                 |
|       16 | Scooters India Limited**                                       |
|       17 | Bharat Pumps &Compressors Limited**                            |
|       18 | Hindustan Prefab Limited                                       |
|       19 | Units of Cement Corporation of India Limited (Nayagaon Unit) # |

## 3. Transactions held up due to litigation

|   S. No. | Name of PSE                                    |
|----------|------------------------------------------------|
|       20 | Karnataka Antibiotics &Pharmaceuticals Limited |

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

|   S. No. | Name of PSE                                 |
|----------|---------------------------------------------|
|       21 | Hindustan Newsprint Limited (subsidiary)*** |

## 5. Transactions not Feasible

|   S. No. | Name of PSE                          |
|----------|--------------------------------------|
|       22 | Engineering Projects India Limited   |
|       23 | Bridge &Roof Company (India) Limited |

## 6. Transactions being processed by respective Administrative Ministries

|   S. No. | Name of PSE                                                    |
|----------|----------------------------------------------------------------|
|       24 | Various Units of India Tourism Development Corporation Limited |
|       25 | Hindustan Antibiotics Limited                                  |
|       26 | Bengal Chemicals &Pharmaceuticals Limited                      |

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