(a) whether the Central Public Sector Enterprises (CPSEs) are regularly incurring losses due to under utilization of capacity;
(b) if so, the details thereof and the reaction of the Government thereto;
(c) whether any persons responsible for the said losses has been identified; and
(d) if so, the details thereof and the action taken against the responsible persons?
THE MINISTER OF STATE FOR HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
(SHRI BABUL SUPRIYO)
(a) to (d): As per Public Enterprises Survey 2015-16 that was laid in the Parliament on 21.3.2017, 43 Central Public Sector Enterprises (CPSEs) had incurred losses continuously for last three years i.e. 2013-14, 2014-15 and 2015-16. The details of losses of these CPSEs are given at Annex.
The reasons for the losses are enterprise specific. Some major reasons are resource crunch, low productivity, unsustainable business operations, old and obsolete plant & machinery, outdated technology, low capacity utilization, excess manpower, lack of business plans, heavy interest burden, high input cost etc. The concerned administrative Ministries / Departments of CPSEs take measures for revival of loss making CPSEs on case to case basis.
The day to day and strategic management of CPSEs is handled by the Board of Directors and the respective administrative Ministries. Monitoring and evaluation of the performance of the CPSEs is also done annually through the MoU system.
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