Lok Sabha Question No. 3911 (UNSTARRED), answered on 2025-08-18
Subject: Disinvestment of Loss Making CPSEs
Ministry: FINANCE
Asked by: Shri Eswarasamy K

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

## LOK SABHA UNSTARRED QUESTION NO. 3911

## TO BE ANSWERED ON 18.08.2025

## Disinvestment of Loss Making CPSEs

## 3911 . Shri Eswarasamy K:

Will the Minister of FINANCE be pleased to state :

- (a) whether the number of loss making Central Public Sector Enterprises (CPSEs) has been increased in the current financial year compared to the previous financial years;

(b)  whether the loss made by these CPSEs is the highest during the last four years and if so, the details thereof;

(c)  the details of measures taken by the Government to improve the financial health of these CPSEs;

- (d) whether the Government is contemplating disinvestment of these loss making CPSEs;
- (e) if so, the details thereof and if not, the reasons therefor; and

(f)  the  details  of  steps  contemplated  to  provide  alternate  source  of  livelihood  to  laid  off workers of these CPSEs?

## ANSWER

## THE MINISTER OF STATE FOR FINANCE (SHRI PANKAJ CHAUDHARY)

(a)  & (b) As per the Public Enterprises (PE) Survey, the number of loss incurring CPSEs for the  Financial  Years  2022-23  and  2023-24  are  57  and  58  respectively.  The  details  of  loss incurred  by  loss  incurring  CPSEs  during  2020-21,  2021-22,  2022-23  and  2023-24  is  at Annexure.

(c)  CPSEs function under the administrative control of respective Ministries / Departments. Enterprises  specific  measure  for  their  turnaround  are  taken  by  the  respective  Boards  and Administrative Ministries/Departments having jurisdiction over the concerned CPSEs. These, inter  alia,  include  business  restructuring,  formation  of  joint  ventures,  modernization  and improved  marketing  Strategies  etc.  Government  has  also  notified  the  New  Public  Sector Enterprise ('PSE') Policy in February, 2021. The CPSEs are, therefore, to be dealt accordin g to the provisions of the New PSE Policy.

(d) & (e) Government carries out disinvestment in Public Sector Enterprises (PSEs) through (i) Minority  Stake  Sale  through  various  SEBI-approved  methods  such  as  Initial  Public  Offer (IPO), Offer for Sale (OFS), Buyback of shares etc. and (ii) Strategic Disinvestment i.e. entire or  substantial  sale  of  Government  shareholding  to  a  strategic  buyer  along  with  transfer  of management  control.  The  policy  on  strategic  disinvestment/privatization  is  based  on  the economic principle that Government should minimize presence in sectors, where competitive private sector has come of age and economic potential of such entities may be better discovered in the hands of strategic investor due to various factors such as infusion of capital, technological upgradation, efficient management practices etc. Profitability/loss is not among the relevant criteria for privatization/strategic disinvestment.

(f) Department  of Public Enterprises (DPE)  is implementing  Scheme  for Research, Development and Consultancy & Reorientation" (RDCR) and one of the objectives of RDCR scheme is to provide skill enhancement and reorientation training to facilitate self-employment or wage employment for Voluntary Retirement Scheme (VRS)/ Voluntary Separation Scheme (VSS) optees of CPSEs or their eligible dependents .

Annexure Annexure  referred  to  in  reply  to  Parts  (a)  &  (b)  of  Lok  Sabha  Unstarred  Question Number 3911 for answer on 18-08-2025 Number of loss incurring CPSEs and amount of loss

| Year    |   No. of loss incurring CPSEs | Loss of loss incurring CPSEs (Rs. in Cr.)   |
|---------|-------------------------------|---------------------------------------------|
| 2020-21 |                            77 | 31,058                                      |
| 2021-22 |                            59 | 14,586                                      |
| 2022-23 |                            57 | 28,827                                      |
| 2023-24 |                            58 | 21,011                                      |