(a) whether the Government have plans to implement stringent measures pertaining to
financial discipline in those public sector undertakings which are leading to losses;
(b) if so, the details thereof; and
(c) the steps taken by the Government to bail out public sector undertakings through
the assistance of financial institutions?
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE(S.S. PALANIMANICKAM)
(a) & (b) The Government has not issued any general Guidelines specifically relating to
financial discipline in loss making Central Public Sector Enterprises (CPSEs). The concerned
administrative Ministry/Department and Board of the CPSE are empowered to take appropriate
measures for maintaining financial discipline for controlling losses. However, Government has
issued guidelines relating to austerity measures to be adopted by CPSEs including loss making
CPSEs from time to time.
(c) The Government established the Board for Reconstruction of Public Sector Enterprises (BRPSE) in December, 2004 to advise the Government for strengthening, modernization, revival
and restructuring of CPSEs. The Administrative Ministry concerned with the CPSE prepares
proposal for revival of sick companies on case to case basis and refers them to BRPSE for
its recommendation. On the recommendation of BRPSE, Government have approved revival of
40 CPSEs at a total assistance of ` 23591 crore (cash assistance of ` 3276 crore and
non-cash assistance of ` 20315 crore in the form of waivers/write offs of loans etc.)