Lok Sabha Question No. 2381 (UNSTARRED), answered on 2023-12-18
Subject: Land Acquisition for Setting up of PSUs
Ministry: FINANCE
Asked by: Krupal Balaji Tumane, Gajanan Chandrakant Kirtikar

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF PUBLIC ENTERPRISES LOK SABHA UNSTARRED QUESTION NUMBER 2381 TO BE ANSWERED ON 18.12.2023 Land Acquisition for Setting up of PSUs

## †2381. SHRI KRUPAL BALAJI TUMANE: SHRI GAJANAN KIRTIKAR:

- Will the Minister of FINANCE be pleased to state: (a)  the  details  of  the  land  acquired  by  the  Government  for  setting  up  of  Public  Sector Undertakings  (PSUs)  in  various  States  of  the  country,  State/district-wise,  particularly  in Maharashtra; (b) the details of the land used by each of the central PSUs during the last fifteen years till date in terms of percentage, PSU-wise; (c) whether the Government has taken a decision for the sale/privatisation of central PSUs in various States including Maharashtra; (d) if so, the details thereof and if not, the reasons therefor and the suitable arrangements made by the Government for its employees; (e) whether several States have asked the Government to return the acquired land in the wake of the said decision; and (f) if so, the details of the States making such request and the action taken or likely to be taken
- by the Government so far in this regard?

## ANSWER THE MINISTER OF STATE FOR FINANCE

## (DR. BHAGWAT KISHANRAO KARAD)

- (a & b) Central Public Sector Enterprises (CPSEs) function under the administrative control of  respective  Ministries/Departments.  Any  decision  to  set  up  new  CPSEs  and  land acquisition  is  taken  by  the  sectoral  line  Ministries/Departments  after  taking  into

consideration  the needs  and  commercial  viability and  any  extant  policy  of  the Government. Information on land details is not maintained centrally.

- (c) and (d) Yes, the Government , since 2016, has given 'in-principle' approval for strategic disinvestment of 36 cases of Public Sector Enterprises (PSEs) and/or Subsidiaries/Units/Joint Ventures  of  PSEs/Bank.  Out of  36  cases,  33  cases  are  being handled by  Department of Investment and Public Asset Management (DIPAM) and 3 cases are being handled by the respective Administrative Ministry/Department. Details are given in Annexure- I

The  terms and Condition in the share  Purchase  Agreement  (SPA)/Shareholders Agreement  (SHA)  for  strategic  disinvestment/  privatisation  contain  employee  related provision to suitably address employees concerns such as employee protection, gratuity, provident  fund.  Further,  labour  laws  and  regulations  relating  to  protection,  working conditions,  welfare  etc.,  as  applicable  will  also  continue  to  be  applicable  will  also continue to be applicable to the privatised PSEs' After privatisation, the prospects of the employees are also expected to improve with the growth in production, productivity and profitability.

- (e and f) In the process of strategic disinvestment, non-operational/surplus land is sometime hived off and retained for future alternative use. Some State Governments have requested to take over such land parcels. The detail are as given hereunder:
- i. Government of Tamil  Nadu  has  requested  for  some  surplus  land  of  SAIL's Salem Steel Plant for establishment of Defence Corridor.
- ii. BEML  Ltd  received  requests  from  the  States  of  Kerala,  Telangana  and Karnataka (through their infrastructure management Boards/Organisations) for return of surplus land. In case of Kerala and Telangana, the transfer of land has

been completed. In case of Karnataka, the process of transfer is substantially completed.

- iii. The government of Tamil Nadu has requested to return land of HLL Medipark Limited  (HML)  and  land/assets  of  HLL  Biotech  Limited.  In  case  of  HML, MoH&FW has informed State Government of Tamil Nadu that they prima facie they have no objection to their proposal.

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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
2. $ Transaction completed.
3. ^ Transaction halted for the time being.
4. # Successful bidder disqualified and transaction has been terminated.
2. Transactions halted as the PSEs recommended / approved for closure; or any other reason
* Government approved for closure of the Company.

|   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                                                                                                                                            |

|   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) ## |

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

## 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)*** |

***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.

## 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                     |

## 7. Completed Transactions

|   S. No. | CPSE                                                      | Acquirer                    |
|----------|-----------------------------------------------------------|-----------------------------|
|       27 | Hindustan Petroleum Corporation Limited (HPCL)            | ONGC                        |
|       28 | Rural Electrification Corporation Limited (REC)           | PFC                         |
|       29 | HSCC(India) Limited                                       | NBCC                        |
|       30 | National Projects construction corporation Limited (NPCC) | WAPCOS                      |
|       31 | Dredging Corporation of India Limited (DCIL)              | Consortium of 4 major ports |

|   32. | THDC India Limited (THDC)                                 | NTPC                                 |
|-------|-----------------------------------------------------------|--------------------------------------|
|    33 | North Eastern Electric Power Corporation Limited (NEEPCO) | NTPC                                 |
|    34 | Kamrajar Port Limited                                     | Chennai Port Trust                   |
|    35 | Air India^^                                               | M/s Talace Pvt. Ltd                  |
|    36 | Neelachal Ispat Nigam Limited (NINL)                      | M/s Tata Steel Long Products Limited |

^^Subsidiaries which are now with AIAHL are still to be divested

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