Dealing With Loss- Making Central Public Sector Enterprises

The concerned administrative Ministries/ Departments of the Central Public Sector Enterprises (CPSEs) take various steps including financial restructuring, business restructuring, infusion of funds for expansion/modernization/ manpower rationalization, payment of liabilities, etc. for transforming the loss-making and sick CPSEs into profit making CPSEs. Giving this information in written reply to a question in the Lok Sabha, Shri Praful Patel, Minister of Heavy Industries and Public Enterprises, further informed the House that the Government of India established the Board for Reconstruction of Public Sector Enterprises (BRPSE) in December, 2004 for advising the Government for strengthening, modernizing, reviving, and restructuring of CPSEs.

Shri Patel said that based on the recommendations of BRPSE, the Government approved revival of 44 CPSEs, envisaging a total assistance of Rs. 28,333.10 crores (cash assistance of Rs. 5,272.62crores in the form of infusion of funds and non-cash assistance of Rs. 23,060.48crores in the form of waivers/write offs of interest/loans, conversion of loans into equity, etc.). In addition concerned holding CPSEs have implemented revival of 3 subsidiary CPSEs at a total cost of Rs. 6923.01 crore (cash assistance Rs. 1362.93 crore and non-cash assistance Rs. 5560.08 crore).

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KKP