(a) whether certain undertakings in the country are running on low revenue and more
expenditure basis;
(b) if so, the reasons therefor;
(c) the various efforts made by the Government to address these reasons; and
(d) the corrective measures being taken by the Government in this regard?
THE MINISTER OF HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
(SHRI PRAKASH JAVADEKAR)
(a): As per Public Enterprises Survey 2017-18 laid in the both the Houses of Parliament on 27.12.2018, there were 52 CPSEs which had low revenue and more expenditure continuously during the three years (2015-16, 2016-17 & 2017-18). A list of such CPSEs is given at annex-I.
(b): The reasons for losses differ from CPSE to CPSE. However, some common problems faced by loss making CPSEs include obsolete plants and machinery, heavy interest burden, resource crunch, low capacity utilization, low productivity, surplus manpower, high input cost, non-remunerative prices etc.
(c) and (d): Improvement in the performance of CPSEs is a continuous process. Enterprise specific measures for their turnaround are taken by the administrative Ministries/Department having jurisdiction over the concerned CPSEs. These, inter alia, include business restructuring, formation of joint ventures, modernization and improved marketing strategies, corporate governance, professionalization of boards of CPSEs etc. Further, Department of Public Enterprises (DPE) has issued Guidelines dated 29.10.2015 for “Streamlining the mechanism for the revival and restructuring of sick/incipient sick and week CPSEs” to be implemented by the administrative Ministries/Department on a case-to-case basis.
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