Lok Sabha Question No. 1697 (UNSTARRED), answered on 2016-03-08
Subject: PSUs under Ministry
Ministry: CHEMICALS AND FERTILIZERS
Asked by: P. KUMAR

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS & FERTILIZERS DEPARTMENT OF FERTILIZERS

## LOK SABHA

UNSTARRED QUESTION NO. 1697

TO BE ANSWERED ON: 08.03.2016

## PSUs Under Ministry

## 1697 . SHRI P. KUMAR:

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

- (a) the details of the total number of Public Sector Units (PSUs) under the Ministry, along with their financial status as to whether   loss-making or   profit-making, separately, during each of the last two years and the current year;
- (b) the action taken by the Government to revive the loss-making PSUs; and
- (c) the funds allottedlsanctioned/ releasedlutilized by them for this purpose, during the said period, year-wise , PSU-wise and the steps taken by the Government in this regard?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS

## (SHRI HANSRAJ GANGARAM AHIR)

(a) There are 17 PSUs under the administrative control of the Ministry of Chemicals & Fertilizers: A detail containing profitlloss status of these PSUs is as under:

| S No.                     | Name of PSU                                               | Profitllost status during last two years and in current year   | Profitllost status during last two years and in current year   | Profitllost status during last two years and in current year   |
|---------------------------|-----------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------|
|                           |                                                           | 2013-14                                                        | 2014-15                                                        | 2015-16 (Prov:)                                                |
| Department of Fertilizers | Department of Fertilizers                                 | Department of Fertilizers                                      | Department of Fertilizers                                      | Department of Fertilizers                                      |
|                           | Brahmaputra Valley Fertilizer corporation Limited (BVFCL) | Loss                                                           | Profit                                                         | Profit                                                         |
| 2                         | The Fertilizers And Chemicals Travancore Limited (FACT)   | Loss                                                           | Loss                                                           | Loss                                                           |
| 3                         | FCI Aravali Gypsum and Minerals India Limited (FAGMIL)    | Profit                                                         | Profit                                                         | Profit                                                         |
|                           | Fertilizer Corporation of India Limited (FCIL)            | Profit                                                         | Profit                                                         | Profit                                                         |
| 5                         | Hindustan Fertilizer Corporation Limited (HFCL)           | Loss                                                           | Loss                                                           | Loss                                                           |

| No.                                      | Name of PSU                                                      | Profitllost status during last two and in current year years   | Profitllost status during last two and in current year years   | Profitllost status during last two and in current year years   |
|------------------------------------------|------------------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------|
|                                          |                                                                  | 2013-14                                                        | 2014-15                                                        | 2015-16 (Prov )                                                |
| 6                                        | Madras Fertilizers Limited (MFL)                                 | Profit                                                         | Loss                                                           | Loss                                                           |
|                                          | National Fertilizers Limited (NFL)                               | Loss                                                           | Profit                                                         | Profit                                                         |
| 8                                        | Projects & Development India Limited (PDIL)                      | Profit                                                         | Loss                                                           | Loss                                                           |
| 9                                        | Rashtriya Chemicals & Fertilizers (RCF)                          | Profit                                                         | Profit                                                         | Profit                                                         |
| Department of Chemicals & Petrochemicals | Department of Chemicals & Petrochemicals                         | Department of Chemicals & Petrochemicals                       | Department of Chemicals & Petrochemicals                       | Department of Chemicals & Petrochemicals                       |
| 10                                       | Hindustan Fluorocarbons Ltd: (HOCL)                              | Loss                                                           | Loss                                                           | Loss                                                           |
| 11                                       | Hindustan Organic Chemicals Ltd (HOCL)                           | Loss                                                           | Loss                                                           | Loss                                                           |
| 12                                       | Hindustan Insecticides Ltd(HIL)                                  | Profit                                                         | Profit                                                         | Profit                                                         |
| Department 0f Pharmaceuticals            | Department 0f Pharmaceuticals                                    | Department 0f Pharmaceuticals                                  | Department 0f Pharmaceuticals                                  | Department 0f Pharmaceuticals                                  |
| 13                                       | Karnataka Antibiotics & Pharmaceuticals Limited (KAPL)Bangalore: | Profit                                                         | Profit                                                         | Profit                                                         |
| 14                                       | Rajasthan Drugs & Pharmaceuticals Limited (RDPL) Jaipur          | Loss                                                           | Loss                                                           | Loss                                                           |
| 15                                       | Hindustan Antibiotics Limited (HAL) , Pimpri,Pune                | Loss                                                           | Loss                                                           | Loss                                                           |
| 16                                       | Bengal Chemicals & Pharmaceuticals Limited (BCPL) Kolkata        | Loss                                                           | Loss                                                           | Loss                                                           |
| 17                                       | Indian Drugs & Pharmaceuticals Limited (IDPL) Gurgaon            | Loss                                                           | Loss                                                           | Loss                                                           |

(b): Action taken by the Government to revive the loss-making PSUs:

## Fertilizer PSUs

## L. The Fertilizers and Chemicals Travancore Limited (FACT):

For the financial restructuring of FACT, a proposal for revival of the company involving waiver of Government of India loans and interest, granting one-time so as to come out of Board for Industrial and Financial Reconstruction (BIFR) has been finalized and under inter-ministerial consultation: The proposal also includes In principle' approval for sale leveraging of land for raising resources to repay the loans raised against sovereign guarantee and to raise funds for implementation of shortlmedium long term proposed projects: However, to avert immediate crisis, budgetary provision of Rs. 1000 Crore for providing Plan loan to FACT has been made.

## Madras Fertilizers Limited (MFL):

MFL started   incurring losses in the Sick in 2009. Though the Company earned operating profit in 2012-13 & 2013-14, however, the networth of the Company is still negative: In terms of Department of Public Enterprises guidelines on streamlining the mechanism for revival and restructuring of sick Central Public Sector Enterprises, Department of Fertilizers has asked MFL for engaging an external expert agency which has experience and expertise of the business environment operational issues, technology option and financial viability of the sector in which MFL is functioning to explore the possibility of revival of MFL.

## Hindustan Fertilizer Corporation Limited (HFCL):

The Company was declared sick by the BIFR in 1992. The Government declared closure of all units namely Barauni; Haldia and Durgapur of HFCL in 2002. To bring the company out from the purview of BIFR a proposal for the financial restructuring of HFCL and to revive Barauni unit through   bidding route itself is under inter-ministerial consultations.

## Chemicals & Petrochemical PSUs:

HOCL and HFL are sick PSUs and are registered with BIFR as sick companies. The details of which are as under:

## Hindustan Organic Chemicals Ltd: (HOCL):

- In 2001, the Govt  of India provided guarantee for Rs.100 crore for raising resources from the capital market:
- (ii) Following rehabilitation package was approved for the company in March, 2006:
- (a) Fund infusion of Rs.250 crore (preferential shares)
- (b) Non-cash transaction Continuation of the Govt. guarantee for Rs.100 crore (given in 2001) for 10 years and waiver of interest and penal interest

(iii) In February, 2007 , the Rs.20 crore (preference shares) for restarting the Caustic Chlorine plant at Rasayani unit of the company:

- (iv) rehabilitation package of 2006:
- (a) Postponement of the redemption of Rs.270 crore preference shares, that was due for redemption from 2011-12 onwards, to 2015-16 onwards
- (b) Extension of Govt guarantee of Rs.100 crore for 5 more years i.e. up to 28.08.2017
- (v) the company for meeting the working capital requirement, repayment for raw material suppliers, bank loans, employees' dues etc
- (vi) In September, 2015, the Govt. paid annual interest of Rs.10.57 crore on the Rs.100 crore bonds and Rs.14.04 crore on the Rs.150 crore bondsas the company failed to pay both the amounts due to lack of sufficient funds.
- II, Hindustan Fluorocarbons Ltd: (HFL):

A rehabilitation package for HFL was approved by BIFR on 03.12.2007 at a total cost of Rs.19.28 crore comprising ofCapital Expenditure (Rs.8.99 crore) , One Time Settlement (OTS) of banks & financial institutions (Rs.4.67 crore), VRS payment (Rs.4.00 crore) and Working capital 1.62 crore).

the company is diversifying into making products which can be sold in niche market with more margins as compared to PTFE(Poly Tetra Fluoro Ethylene) Therefore, company is focusing on development of fluorospecialty chemicals, wherein contribution is more as compared to PTFE, and has already developed TFE-ETHER, Telomeres etc. HFL has also developed advanced grades of PTFE i.e. Modified PTFE (MPTFE),which has higher margins than ordinary PTFE.Plan loan of Rs.16.80 crore was provided by the Govt:. to HFL in 2014-15 for   plant refurbishment schemes & new initiatives and for development of modified PTFE:

## Pharmaceutical PSUs

Bengal Chemicals & Pharmaceuticals Limited(BCPL): Revival Plan is under implementation.

- Modified Draft Rehabilitation Scheme (Revival Plan) is under active consideration of Government of India:

Hindustan Antibiotics Limited(HAL)Indian Drugs & Pharmaceuticals Limited(IDPL):

- (c): Department wise reply is as under:

Department of Fertilizers: Fund sanctionedlreleased to FACT and MFL is as under:

| Name of Company   | 2013-14   | 2013-14   | 2013-14   | 2014-15   | 2014-15   | 2014-15   | 2015-16   | 2015-16   | 2015-16   |
|-------------------|-----------|-----------|-----------|-----------|-----------|-----------|-----------|-----------|-----------|
| Name of Company   | B.E       | RE        | Actual    | B.E       | RE        | Actual    | BE        | RE        | Actual    |
| FACT              | 211.43    | 0.01      | 0.00      | 42.66     | 0.01      | 0.00      | 34.99     | 1000.00   | 0.00      |
| MFL               | 17.00     | 0.01      | 0.00      | 30.00     | 0.01      | 0.00      | 10.00     | 0.00      | 0.00      |

Rs;in Crores)

Department of Chemicals & Petrochemicals: Funds sanctioned released to HOCL and HFL during the last two and current year are given in the following table: (Rs. in crore) years

| SI: No.   | Name of PSU   | 2013-14 (Actual)   | 2013-14 (Actual)   | 2014-15 (Actual)   | 2014-15 (Actual)   | 2015-16 (up to 31.12.2015)   | 2015-16 (up to 31.12.2015)   |
|-----------|---------------|--------------------|--------------------|--------------------|--------------------|------------------------------|------------------------------|
|           |               | Plan               | Non-Plan           | Plan               | Non-Plan           | Plan                         | Non-Plan                     |
| 1         | HOCL          |                    |                    |                    |                    |                              | 24.61                        |
| 2.        | HFL           |                    |                    | 16.80              |                    |                              |                              |

## Department of Pharmaceuticals:

(Rs: in crores)

#********

| SI: No.   |      | 2015-16        | 2015-16        | 2014-15        | 2014-15        | 2013-14        | 2013-14        |
|-----------|------|----------------|----------------|----------------|----------------|----------------|----------------|
|           |      | Funds allotted | Funds released | Funds allotted | Funds released | Funds allotted | Funds released |
|           | BCPL | 0.01           | nil            | 7.00           | 7.00           | 9.30           | nil            |