THEMINISTER OF HEAVY INDUSTRIES & PUBLIC ENTERPRISES (SHRI PRAFUL PATEL)
(a) & (b): The details of the loss making Central Public Sector Enterprises
(CPSEs) for the last three years, based on the Public Enterprises Survey 2009-10
that was laid in the Parliament on 24.2.2011 are shown below.
Years No. of loss making CPSEs Amount (Rs. in lakh)
2009-10 59 15842
2008-09 55 14621
2007-08 54 10303
(c) & (d): Although Department of Public Enterprises (DPE) issues guidelines
for pay, etc. including Performance Linked Incentives (PLI) in respect of executives
and non-unionised supervisors, wages including PLI of workmen is based on negotiations
between the management and trade unions of each CPSE and may vary from one CPSE to
another. The DPE O.M. dated 25.06.1999 (1997 Pay Revision), stipulates that payment
of perquisites and allowances may be upto a maximum of 50 per cent of the basic pay;
payments over and above the ceiling of 50 per cent should be entirely in the nature
of Performance Related Payment (PRP) which should not exceed 5 per cent of the
distributable profits in an enterprise. Furthermore, the DPE vide its O.M.
dated 27.03.2000 has clarified that in normal circumstances the PLI should be
within 50% of the basic pay, and if the limit is not considered sufficient to
reward the employees for their work, the CPSEs can go beyond 50% of basic pay
but within 5% of distributable profits.
While PRP is entirely dependent / based on the profit of a CPSE, the PLI may
not be so. PLI cannot, therefore, be disbursed in place of PRP. PLI, if any,
can only be distributed within the 50% ceiling on perks & allowances of the
Basic Pay of the individual executive. In view of the above, the payment under
PLI is to be decided by the concerned CPSE with the approval of their
administrative Ministry/Department as per DPE’s guidelines. DPE does not,
however, maintain information in this regard on centralised basis.
(e): The Government has set up a Board for Reconstruction of Public Sector
Enterprises (BRPSE) in December 2004 as an advisory body to advise the Government,
inter alia, on the revival and restructuring of sick/loss making CPSEs. The
concerned administrative Ministries / Departments of the CPSEs prepare proposals
for revival of sick companies and refer them to BRPSE for recommendations. The
Government is open to induct private sector to turnaround companies that have
potential for revival on case to case basis. During the last three years i.e.
2007-08, 2008-09 and 2009-10, the Government has approved revival / restructuring
of 14 CPSEs envisaging a total assistance of 14,757crore (cash assistance of
1321 crore in the form of infusion of funds and non-cash assistance of 13,436
crore in the form of waivers/write offs of interest/loans, etc.).
