Lok Sabha Question No. 2626 (UNSTARRED), answered on 2016-05-10
Subject: Major PSUs and Flagship Programmes
Ministry: CHEMICALS AND FERTILIZERS
Asked by: RAYAPATI SAMBASIVA RAO

## Government of India Ministry of Chemicals and Fertilizers Department  of Pharmaceuticals *********

## LOK SABHA UNSTARRED QUESTION NO. 2626 TO BE ANSWERED ON THE DATED  10.05.2016

## Major PSUs and Flagship Programmes

## 2626 Shri  Rayapati Sambasiva Rao

Will the Minister of CHEMICALS & FERTILIZERS be pleased to state :

- (a) the details  of the major PSUs in his Ministry:
- (b) whether these PSUs are profitable enterprises, if not, the action plan put in place to turn them into a viable/profitable enterprises;
- (c) the  details of  the flagship programmes of the Ministry and the funds allocated for the Ministry during the last three years along with the status of their utilization; and
- (d) the    details  of  the  reasons for non-utilization  of funds  allocated  during  the  said period?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF CHEMICALS AND FERTILIZERS (SHRI HANSRAJ GANGARAM AHIR)

(a)to(d)  Information  is  given  for  the  Ministry  of  Chemicals  &  Fertilizers  in  respect  of Department of Fertilizers, Department of Chemicals & Petrochemicals and Department of Pharmaceuticals separately in Annexure 1. Annexure II and Annexure III respectively.

Annexure I referred to in reply to Lok Sabha Unstarred  Question No. 2626 for answer on 10.05.2016

Information in respect of Department of Fertilizers on Lok Sabha Unstarred  Question No.2626 for answer on 10.05.2016 regarding Major PSUs and Flagship Programmes

| Question in detail                                                                                                                                                              | Reply                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a) the details of the major PSUs in his Ministry;                                                                                                                              | There are nine PSUs under the administrative control of the Department of Fertilizers. These are 1. Brahmaputra Valley Fertilizer Corporation Limited (BVFCL) 2. FCI Aravali Gypsum & Minerals India Limited (FAGMIL) 3. The Fertilizers and Chemicals Travancore Limited (FACT) 4. The Fertilizer Corporation of India Limited (FCIL) 5. Hindustan Fertilizer Corporation Limited (HFCL) 6. Madras Fertilizers Limited (MFL) 7. National Fertilizers Limited (NFL) 8. Project & Development India Limited (PDIL) 9. Rashtriya Chemicals and Fertilizers Limited (RCF) |
| (b) whether these PSUs are profitable enterprises, if not, the action plan put in place to turn them into a viable/profitable enterprises;                                      | BVFCL, FAGMIL, NFL, FCIL and RCF are profitable enterprises. HFCL, FACT, MFL and PDIL are loss making enterprises. Financial Restructuring of the FACT, HFCL and MFL is being contemplated to make them profitable enterprises.                                                                                                                                                                                                                                                                                                                                        |
| (c) the details of the flagship programmes of the Ministry and the funds allocated for the Ministry during the last three years along with the status of their utilisation; and | At present, Department of Fertilizers is not running any Flagship programme.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| (d) the details of the reasons for non-utilisation of funds allocated during the said period?                                                                                   | In view of the reply of part (c) question does not arise.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

Annexure II  referred to in reply to Lok Sabha Unstarred  Question No. 2626 for answer on 10.05.2016

Information in respect of Department of Chemicals and Petrochemicals  on Lok Sabha Unstarred  Question No.2626 for answer on 10.05.2016  regarding Major PSUs and Flagship Programmes

(a&b) : There are four PSUs  under the administrative control of the Department,  three in  the  Chemical  sector    viz.  Hindustan  Insecticides  Ltd.  (HIL),  Hindustan  Organic Chemicals Ltd. (HOCL) and Hindustan Fluorocarbons Ltd. (HFL; which is a subsidiary of HOCL) and one in the Petrochemical sector namely Brahmaputra Crackers & Polymers Limited (BCPL).

HIL is a profit making PSU. BCPL has recently commissioned the Assam Gas Cracker on 2.1.2016, hence question of the profitability of the  enterprise does not arise.

HOCL  and  HFL  are  registered  with  BIFR  as  sick  companies.  The  plan  of  action  for turning HOCL and HFL into viable / profitable enterprises are as follows:

(i) HOCL : In view of the poor financial position of the company, a revival plan for HOCL has  been  approved  by  the  company's  Board  of  Directors.  Based  on  the  information contained  in  the  revival  plan  report,  the  availability  of  funds  /  resources  required  for financing the revival of the company and other relevant information, a plan for reviving the  operations  of  HOCL  has  been  prepared  by  the  Ministry  for  approval  of  the competent authority.

.

(ii)  HFL: For  revival  and  growth  of  HFL,  the  company  has  adopted  the  strategy  to develop  fluorospecialty  chemicals  and  switching  over  from  single  product  to  multiproduct  facility  to  reduce  dependency  on  PTFE  (Poly  Tetra  Fluoro  Ethylene).  A  Plan loan of Rs.16.80 crore was provided to HFL in 2014-15 for plant refurbishment schemes and  new  initiatives  and  for  development  of  modified  PTFE,  which  has  higher  profit margins. Further, based on the revival plan for the company approved by its Board of Directors, a revival / restructuring plan for HFL has been approved 'in principle' by  the Ministry.

(c&d)  :    The  Department  is  not  implementing  any  flagship  programmes.  Hence,  the issue of allocation and of funds for the same and non-utilization thereof does not arise.

## ANNEXURE -III

Annexure III referred to in reply to Lok Sabha Unstarred  Question No. 2626 for answer on 10.05.2016

Information  in  respect  of  Department  of  Pharmaceuticals      on  Lok  Sabha  Unstarred Question  No.2626  for  answer  on  10.05.2016    regarding Major  PSUs  and  Flagship Programmes

- (a) & (b): There are five PSU`s under the administrative control of Department of Pharmaceuticals as given below
1. Karnataka Antibiotics & Pharmaceuticals Limited (KAPL) -  Profit Making
2. Rajasthan Drugs & Pharmaceuticals Limited (RDPL)   Loss Making
3. Bengal Chemicals & Pharmaceuticals Limited (BCPL) Loss Making
4. Indian Drugs & Pharmaceuticals Limited (IDPL) Loss Making
5. Hindustan Antibiotics Limited (HAL) Loss Making
-  Revival package of BCPL is under implementation.
-  Rs. 6.84 Crore were sanctioned to RDPL in March, 2014 for WHO-GMP Compliance

(C) & (d): There is no flagship programme in this Department.