Lok Sabha Question No. 1159 (UNSTARRED), answered on 2021-12-06
Subject: Disinvestment of PSUs
Ministry: FINANCE
Asked by: Ramya  Haridas, Poonam (Mahajan) Vajendla Rao, Kalyan Banerjee

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

## LOK SABHA

## UNSTARRED QUESTION No. 1159

## ANSWERED ON 06.12.2021

## Disinvestment of PSUs

## 1159. MS. RAMYA HARIDAS: SHRI KALYAN BANERJEE: SHRIMATI POONAM MAHAJAN:

Will the Minister of Finance be pleased to state:

- (a) whether it is a fact that wards of employees of closed Public Sector Undertakings (PSUs) are facing a major problem in getting education and are seeking financial help from the people to pay their school fees;
- (c)  the  details  of  PSUs  identified  for  disinvestment  process  during  2021-2022  and  the progress made in this regard so far;
- (b) if so, the details of report received by Government and action taken by Government to reopen or restructure the liquidated PSUs;
- (d) the action taken/proposed to be taken by the Government to protect the interests of the employees and contractual labourers of such PSUs; and
- (e) the details of proposal of Government to disinvest such PSUs in next five year period?

## ANSWER

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

(a): The employees of Central Public Sector Enterprises (CPSEs) under closure are entitled to compensation  as  per  VRS/VSS  guidelines  of  DPE.  Further, Government  is  implementing Counseling,  Retraining  and  Redeployment  (CRR)  scheme for  employees  of  CPSEs  who have been released under VRS / VSS. These separated employees or their dependents have the opportunity of undergoing short duration skill trainings under the CRR scheme for self / wage employment.

(b)  to  (e):  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 CPSEs and/or Subsidiaries/ Units/ Joint Ventures of CPSEs. The details are  given  in Annexure .  The  terms  and  conditions  of  the  strategic  sale  suitably  address employees'  concerns  in  the  Share  Purchase  Agreement  (SPA)/Share  Holders  Agreement (SHA) to be signed by the Government with the strategic buyer.

The  Government  notified  in  February,  2021  the  New  Public  Sector  Enterprise ('PSE') Policy under which the public sector commercial enterprises have been classified as Strategic  and  Non-Strategic  Sectors.  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 privatisation or merger or subsidiarization with another PSE or for closure . PSEs in NonStrategic  Sectors  shall  be  considered  for  privatisation,  where  feasible,  otherwise  such enterprises shall be considered for closur e.

## Annexure  referred  to  in  part  (b)  to  (e)  of  reply  to  Lok  Sabha  Unstarred  Question No.1159 due for answer on 06.12.2021

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

|   Sl. No. | Name of the CPSE/ Subsidiaries/ Units/ Joint Ventures of CPSEs                                                                                      |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
|         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 ofNMDC 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.
- @ Strategic Buyer selected for Air India and AIXL. Transaction is at concluding stage.

## b) Transactions being processed by respective Administrative Ministries

|   Sl. No. | Name of the CPSE/ Subsidiaries/ Units/ Joint Ventures of CPSEs   |
|-----------|------------------------------------------------------------------|
|        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

|   Sl. No. | Name of the CPSE/ Subsidiaries/ Units/ Joint Ventures of CPSEs   |
|-----------|------------------------------------------------------------------|
|        21 | Hindustan Newsprint Limited (subsidiary)                         |
|        22 | Karnataka Antibiotics &Pharmaceuticals Limited                   |

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

|   Sl. No. | Name of the CPSE/ Subsidiaries/ Units/ Joint Ventures of CPSEs   |
|-----------|------------------------------------------------------------------|
|        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

|   Sl. No. | Name of the CPSE/ Subsidiaries/ Units/ Joint Ventures of CPSEs   |
|-----------|------------------------------------------------------------------|
|        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                                            |