Lok Sabha Question No. 237 (STARRED), answered on 2015-12-15
Subject: Loss Making PSUs
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: DHARMENDRA YADAV, SUKHBIR SINGH JAUNPURIA

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

## LOK SABHA

## STARRED QUESTION No. *237

## TO BE ANSWERED ON 15 th  December, 2015

## Loss Making PSUs

## *237.   SHRI DHARMENDRA YADAV: SHRI SUKHBIR SINGH   JAUNAPURIA:

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

- (a) whether a number of Public Sector Undertakings (PSUs) in the country are sick/running in losses and if so, the details of the losses incurred by the said PSUs during each of the last three years along with the reasons therefor, PSU-wise;
- (b) the efforts made by the Government to revive the sick/loss making PSUs and the progress made so far in this regard;
- (c) whether the Government has any proposal for privatisation of such PSUs and if so, the details thereof; and
- (d) the steps being taken to turn the sick/loss making PSUs into profitable ones under the Make in India policy?

## THE MINISTER OF HEAVY INDUSTRIES AND PUBLIC ENTERPRISES

## ANSWER (SHRI ANANT G. GEETE)

- (a) to (d): A statement is laid on the Table of the House.

* * *

## Statement referred to in Lok Sabha Starred Question No.*237 for reply on 15.12.2015 on 'Loss Making PSUs'

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(a): As  per  information  available  in  the  Public  Enterprises  Survey  2011-12,  2012-13  and 2013-14,  there  are  53  Central  Public  Sector  Enterprises  (CPSEs)  which  have  incurred  losses continuously for 3 years from 2011-12 to 2013-14. The details of loss incurred by each CPSE are given in Annex.

The  reasons  for  losses/sickness  in  CPSEs  vary  from  enterprise  to  enterprise.    Some common reasons  for losses/sickness in CPSEs are old and obsolete plant & machinery, outdated technology, low capacity utilization, low productivity, high interest burden, excess manpower, high cost of production, weak marketing strategies,  lack of business plans, dependence on Govt. orders, shortage of working capital , etc.

(b)  to  (d  ):  It  is  the  responsibility  of  the  concerned  administrative  Ministry/  Department  for revival/ restructuring/privatization of sick/loss making CPSEs and to take steps for making these CPSEs  into  profitable  ones.  Role  of  the  Department  of  Public  Enterprises  is  to  issue  policy guidelines. Towards this, Department of Public Enterprises has issued on 29.10.2015 guidelines for 'Streamlining the mechanism for revival and restructuring of sick/ incipient sick and weak Central  Public  Sector  Enterprises:  General  principles  and  mechanism  of  restructuring"  to  be followed  by  the  administrative  Ministries  /Departments  for  revival/restructuring  or  closure  of CPSEs under their administrative control in a time bound manner.

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## Annex referred to in part (a)  in reply to Lok Sabha Starred Question No.*237 for reply on 15.12.2015

## List of CPSEs incurred loss continuously for three years from 2011-12 to 2013-14

| S. No.   | CPSE Name                                           | Loss (Rs. in lakh)   | Loss (Rs. in lakh)   | Loss (Rs. in lakh)   |
|----------|-----------------------------------------------------|----------------------|----------------------|----------------------|
|          |                                                     | 2011-12              | 2012-13              | 2013-14              |
| 1        | BENGAL CHEMICALS &PHARMACEUTICALS LTD.              | -1592                | -1794                | -2906                |
| 2        | BRAHMAPUTRA VALLEY FERTILIZER CORPN. LTD.           | -12881               | -3264                | -15829               |
| 3        | HINDUSTAN ANTIBIOTICS LTD.                          | -7227                | -6937                | -8423                |
| 4        | HINDUSTAN FERTILIZER CORPN. LTD.                    | -38089               | -38053               | -38050               |
| 5        | HINDUSTAN ORGANIC CHEMICALS LTD.                    | -7807                | -13799               | -17685               |
| 6        | IDPL (TAMILNADU) LTD.                               | -36                  | -341                 | -341                 |
| 7        | INDIAN DRUGS &PHARMACEUTICALS LTD.                  | -48988               | -23958               | -17443               |
| 8        | AIR INDIA CHARTERS LTD.                             | -60250               | -35116               | -9809                |
| 9        | AIR INDIA LTD.                                      | -755974              | -549016              | -538882              |
| 10       | AIRLINE ALLIED SERVICES LTD.                        | -11474               | -13339               | -22122               |
| 11       | HOTEL CORPN. OF INDIA LTD.                          | -2129                | -3562                | -4087                |
| 12       | STCL LTD.                                           | -28466               | -29612               | -35252               |
| 13       | BHARAT SANCHAR NIGAM LTD.                           | -885070              | -788444              | -701976              |
| 14       | I T I LTD.                                          | -36980               | -18206               | -34426               |
| 15       | MILLENNIUM TELECOM LTD.                             | -20                  | -20                  | -17                  |
| 16       | FOOD CORPN. OF INDIA                                | -6463                | -435                 | -927                 |
| 17       | HINDUSTAN VEGETABLE OILS CORPN. LTD.                | -2378                | -1146                | -2510                |
| 18       | HINDUSTAN SHIPYARD LTD.                             | -8598                | -5517                | -4621                |
| 19       | NORTH EASTERN HANDICRAFTS& HANDLOOM DEV.CORPN. LTD. | -151                 | -150                 | -232                 |
| 20       | ANDAMAN &NICOBAR ISL. FOREST& PLANT.DEV.CORP.LTD    | -3196                | -3571                | -4020                |
| 21       | BHARAT PUMPS &COMPRESSORS LTD.                      | -91                  | -2791                | -524                 |
| 22       | BHEL ELECTRICAL MACHINES LTD.                       | -38                  | -55                  | -106                 |
| 23       | HINDUSTAN CABLES LTD.                               | -64827               | -88505               | -88505               |
| 24       | HINDUSTAN PAPER CORPORATION LTD.                    | -9520                | -15187               | -11850               |
| 25       | HINDUSTAN PHOTO FILMS MANUFACTURING CO. LTD.        | -135232              | -156059              | -156059              |
| 26       | HMT BEARINGS LTD.                                   | -1012                | -207                 | -1598                |
| 27       | HMT CHINAR WATCHES LTD.                             | -4404                | -5116                | -5116                |
| 28       | HMT MACHINE TOOLS LTD.                              | -4614                | -4365                | -5266                |
| 29       | HMT WATCHES LTD.                                    | -22404               | -24248               | -24248               |
| 30       | INSTRUMENTATION LTD.                                | -6769                | -5409                | -6861                |

|   31 | NAGALAND PULP &PAPER COMPANY LTD.   |   -1190 |   -1458 |   -1473 |
|------|-------------------------------------|---------|---------|---------|
|   32 | RICHARDSON &CRUDDAS(1972) LTD.      |   -1626 |   -2949 |    -383 |
|   33 | TRIVENI STRUCTURALS LTD.            |   -5233 |   -7587 |   -7587 |
|   34 | TUNGABHADRA STEEL PRODUCTS LTD.     |   -2875 |   -3115 |   -3191 |

| S. No.   | CPSE Name                                   | Loss (Rs. in lakh)   | Loss (Rs. in lakh)   | Loss (Rs. in lakh)   |
|----------|---------------------------------------------|----------------------|----------------------|----------------------|
|          |                                             | 2011-12              | 2012-13              | 2013-14              |
| 35       | TYRE CORPORATION OF INDIA LTD.              | -2086                | -1636                | -1636                |
| 36       | BHARAT PETRO RESOURCES LTD.                 | -8894                | -38264               | -16617               |
| 37       | BIECCO LAWRIE LTD.                          | -2013                | -1195                | -1439                |
| 38       | HPCL BIOFUELS LTD.                          | -4360                | -14722               | -11588               |
| 39       | PRIZE PETROLEUM COMPANY LTD.                | -393                 | -126                 | -2281                |
| 40       | BHARATWAGON &ENGG. CO. LTD.                 | -867                 | -759                 | -667                 |
| 41       | BURN STANDARD COMPANY LTD.                  | -7610                | -1966                | -828                 |
| 42       | FRESH &HEALTHY ENTERPRISES LTD.             | -1222                | -948                 | -3916                |
| 43       | NATIONAL RESEARCH DEVELOPMENT CORPN.        | -58                  | -172                 | -108                 |
| 44       | SHIPPING CORPORATION OF INDIA LTD.          | -42821               | -11431               | -27466               |
| 45       | HINDUSTAN STEELWORKS COSTN. LTD.            | -2808                | -1981                | -1867                |
| 46       | J &KMINERAL DEVELOPMENT CORPN. LTD.         | -64                  | -96                  | -74                  |
| 47       | THE BISRA STONE LIME COMPANY LTD.           | -686                 | -1814                | -1876                |
| 48       | BIRDS JUTE &EXPORTS LTD.                    | -1109                | -865                 | -865                 |
| 49       | BRITISH INDIA CORPORATION LTD.              | -6030                | -8278                | -8278                |
| 50       | NATIONAL JUTE MANUFACTURES CORPORATION LTD. | -3821                | -1600                | -655                 |
| 51       | PONDICHERRY ASHOK HOTEL CORPN. LTD.         | -38                  | -30                  | -33                  |
| 52       | RANCHI ASHOK BIHAR HOTEL CORPN. LTD.        | -58                  | -95                  | -82                  |
| 53       | UTKAL ASHOK HOTEL CORPN. LTD.               | -60                  | -61                  | -59                  |

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