Lok Sabha Question No. 806 (UNSTARRED), answered on 2016-03-01
Subject: Closure of Loss Making CPSEs
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: VIJAY KUMAR S.R., ASHOK SHANKARRAO CHAVAN, GAJANAN CHANDRAKANT KIRTIKAR, JAYAKUMAR JAYAVARDHAN, BIDYUT BARAN MAHATO, SHIVAJI ADHALRAO PATIL

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES AND PUBLIC ENTERPRISES DEPARTMENT OF HEAVY INDUSTRY

## LOK SABHA

## UNSTARRED QUESTION NO.806 TO BE ANSWERED ON 01.03.2016

## Closure of Loss Making CPSEs

806. SHRI S.R. VIJAYAKUMAR:

SHRI ASHOK SHANKARRAO CHAVAN:

SHRI GAJANAN KIRTIKAR:

DR. J. JAYAVARDHAN:

SHRI BIDYUT BARAN MAHATO:

SHRI SUDHEER GUPTA:

DR. SUNIL BALIRAM GAIKWAD:

Will the Minister of HEAVY INDUSTRIES AND PUBLIC ENTERPRISES be pleased to state:

- (a) the names of Central Public Sector Enterprises (CPSEs) which are incurring losses regularly;
- (b)  whether  the  Government  had  decided  to  disinvest  or  close  down  Central  Public  Sector Enterprises (CPSEs) which are incurring losses regularly;
- (c) if so, the details thereof and the time by which final decision is likely to be taken in this regard;

(d) whether the Government has given financial assistance/package for closure of unviable units of

- HMT recently and if so, the details thereof; and
- (e)  whether  the  Government  has  also  approved  Voluntary  Retirement  Scheme  (VRS)  to  the employees of such CPSEs including HMT and if so, the details thereof?

## ANSWER

## MINISTER OF  STATE IN THE MINISTRY OF  HEAVY INDUSTRIES AND PUBLIC ENTERPRISES (SHRI  G.M. SIDDESHWARA)

- (a): The following Central Public Sector Enterprises (CPSEs) under Department of Heavy Industry (DHI) are incurring losses regularly over the last three years:
- (i) Hindustan Cables Ltd;
- (ii) Hindustan Newsprint Ltd;
- (iii) Hindustan Papers Ltd;
- (iv) Hindustan Photo Films & Manufacturing Ltd;
- (v) HMT (Bearings) Ltd;
- (vi) HMT (Chinar Watches) Ltd;
- (vii) HMT (Watches) Ltd;
- (viii) HMT (Machine Tools) Ltd;

- (ix) Bharat Heavy Electricals Ltd - Electrical Machineries Ltd;
- (x) Bharat Pumps & Compressors Ltd;
- (xi) Instrumentations Ltd;
- (xii) Nagaland Pulp & Paper Company Ltd;
- (xiii) Richardson & Cruddas Ltd;
- (xiv) Triveni Structurals Ltd;
- (xv) Tungabhadra Steel Products Ltd;
- (xvi) Tyre Corporation of India Ltd.

In  addition  to  above  the  following  CPSEs  have  gone  into  losses  in  the  last  financial  year  i.e. 2014-15:

- (i) HMT Ltd;
- (ii) NEPA Ltd;
- (iii) Heavy Engineering Corporation Ltd;

(b) to (e):  Department of Disinvestment has informed that they are, at present not considering any proposal for disinvestment of any loss making CPSE under DHI.

However, DHI has been undertaking appraisals of each loss making CPSE to assess the prospects of revival.  As a part of this exercise,  the loss making CPSEs having the potential of turn around are revived and those found chronically sick are disinvested or closed down after payment of due compensation to employees.

Accordingly,  a  decision  has  been  taken  to  close  down  the  five  chronically  sick  CPSEs  namely Tungabhadra Steel Products Ltd.  (TSPL), HMT Watches Ltd., HMT Chinar Watches Ltd., HMT Bearings Ltd. and Hindustan Cables Ltd (HCL).

CCEA in  its  meeting  on  6 th January,  2016  approved  the  closure  of  HMT  Watches  Ltd.,  HMT Chinar Watches Ltd. and HMT Bearings Ltd. by offering attractive VRS/VSS to its employees and disposal of movable and immovable properties as per Government policy.

The total requirement of cash assistance for implementing the decision of closure of three HMT subsidiary companies viz.  HMT Watches Ltd, HMT Chinar Watches ltd and HMT Bearings Ltd would  be  Rs.  427.48  crores.  As  per  the  CCEA  approval,  all  the  employees  of  the  three  HMT Subsidiaries would be offered attractive VRS package on 2007 notional pay scales with gratuity and leave encashment also at 2007 notional pay scales, in relaxation of DPE guidelines.

***************