Question : PSUS RUNNING INTO LOSSES

(a) whether it is a fact that almost all the PSUs under the Ministry are running into continuous losses;

(b) if so, the details of the losses incurred by each Public Sector Undertaking during the last three years and till October, 2000;

(c) the reasons therefor;

(d) the number of PSUs referred to BIFR for disinvestment and rehabilitation package;

(e) the number of PSUs which have shown improvement after getting the rehabilitation package; and

(f) the present status of profit or loss and equity that Government own in these Public Sector Undertakings?

THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS (SHRI SATYA BRATA MOOKHERJEE)

(a) to (e) The information is given in the Annexure.



ANNEXURE DETAILS OF INFORMATION REFERRED TO IN REPLY TO PARTS (a) to (f) OF UNSTARRED QUESTION NO. 3615 TO BE ANSWERED ON 12.12.2000 IN THE LOK SABHA

DEPARTMENT OF CHEMICALS AND PETROCHEMICALS

(a), (b), (c) & (f) The details of the Public Sector Undertakings (PSUs) under the administrative control of the Department of Chemicals & Petrochemicals incurring continuous losses during the last three years and upto September’ 2000 during 2000-01 are given below:

NAME OF	Profit(+)/loss(-)	Profit(+)/loss(-)	Profit(+)/loss(-)	Profit(+)/ loss (-)	Govt. held	MAIN REASONS
THE PSU	(-)1997-98	1998-99	1999-2000	2000-01 upto	equity(%)	FOR LOSSES	Sept’00 (prov.)
Hindustan Organic
Chemicals Ltd (HOCL)	-5.09	-23.05	-105.02	-21.84	58.61%	Interest burden,	depreciation, increase	in input cost and falling	prices of end products.	There has also been a squeeze	on margins and consequently,	on profits.
Hindustan Insecticides
Ltd. (HIL)	-1.97	-5.58	-14.08	-8.85	100%	Idle expenditure incurred at	(un-audited)	the Delhi Unit which stopped	operations w.e.f 30.11.96 as	per orders of Hon’ble Supreme	Court, increased competition,	consequent decline in the selling	price of agro-pesticides, etc.
Indian Drugs and
Pharmaceutical Ltd. 

(IDPL)	-157.39	-187.00	-209.29	-117.71	100%	Severe competition from private	sector, large employees related	costs, inability of the Government	to extend budgetary support and a	heavy burden of various social overheads.
Hindustan Antibiotics
Ltd. (HAL)	-23.5	-12.92	-7.47	-2.63	100%	Severe competition from private	sector, large employees related	costs, inability of the Government	to extend budgetary support and a	heavy burden of various social overheads 
Bengal Chemicals &
Pharamceutical Ltd. 

(BCPL)	-3.37	-0.65	-3.87	0.61	100%	Severe competition from private	sector, large employees related	costs, inability of the Government	to extend budgetary support and a	heavy burden of various social overheads.	BCPL has shown some improvement
Smith Stanistreet
Pharmaceuticals Ltd. 

(SSPL)	-5.07	-6.09	-6.68	-2.97	100%	Severe competition from private	sector, large employees related	costs, inability of the Government	to extend budgetary support and a	heavy burden of various social overheads.

Bengal Immunity Ltd 

(BIL)	-8.81	-9.77	-14.18	-7.13	100%	Severe competition from private	sector, large employees related	costs, inability of the Government	to extend budgetary support and a	heavy burden of various social overheads.

Referred to BIFR	Recommended for Disinvestment
Indian Drugs and Pharmaceutical Ltd. (IDPL)	Hindustan Organic Chemicals Ltd (HOCL)
Hindustan Antibiotics Ltd. (HAL)	Hindustan Insecticides Ltd. (HIL)
Bengal Chemicals & Pharamceutical Ltd. (BCPL)
Smith Stanistreet Pharmaceuticals Ltd. (SSPL)
Bengal Immunity Ltd (BIL)

NAME OF	Accumulated	Profit(+)/loss	Profit(+)/loss	Profit(+)/loss(-)	Profit(+)/ loss (-)	Govt. held	MAIN REASONS
THE PSU	loss as on	(-)1997-98	1998-99	1999-2000	2000-01 upto	equity(%)	FOR LOSSES	31.3.2000	Oct’00 (prov.)	(Rs/crore)
Fertilizer Corporation
of India Ltd.(FCI)	5904.11	(-)735.69	(-)838.29	(-)854.99	(-)569.69	100%	Technological, design	and equipment deficiencies,	frequent equipment breakdowns,	increase in the cost of liquid	petroleum products, power shortages,	industrial relations problems, and	surplus manpower and resource	constraints.
Hindustan Fertilizer
Corporation Ltd.(HFC)	4192.07	(-)647.83	(-)514.49	(-)564.23	(-)373.34	100%	Technological, design	and equipment deficiencies,	frequent equipment breakdowns,	increase in the cost of liquid	petroleum products, power shortages,	industrial relations problems, and	surplus manpower and resource	constraints.
Pyrites, Phosphates &
Chemicals Ltd. (PPCL)	245.50	(-)53.40	(-)87.49	(-)70.18	(-) 14.76	100%	Delays in disbursement of concession,	withdrawal of the imports substitution	incentives, intrinsic cost disadvantage	of pyrites based sulphuric acid	production, increase in operating costs	of pyrites mining at Amjhore, rising costs	of deep underground mining at Mussoorie	and increased transportation costs.
Projects & Developments
India Ltd. (PDIL)	98.26	(+) 6.09	(-)15.85	(-)19.88	(-) 16.17	100%	Low level of orders for catalyst and	lack of job orders as the new projects	envisaged at the time of formulation of	the revival package got delayed.
Paradeep Phosphates
Ltd.(PPL)	420	(-)105.53	(-)57.95	(-)110.00 (Prov.)	(-)49.81	100%	Depreciation of rupee leading to higher	cost of inputs, heavy interest burden,	inadequate working capital due to	continuous cash losses, delay in	disbursement of concession, low capacity	utilisation of 0acid plants leading to	higher imports of phosphoric acid, and	inventory carrying cost on heavy build	up of stocks.

Referred to BIFR	Recommended for Disinvestment
Hindustan Fertilizer Corporation Ltd.	Madras Fertilizers Ltd.
Fertilizer Corporation of India Ltd.	National Fertilizers Ltd.
Projects & Development India Ltd.	Fertilizers & Chemicals Travancore Ltd.
Pyrites, Phosphates and Chemicals Ltd.	Rashtriya Chemicals & Fertilizers Ltd.	Paradeep Phosphates Ltd.	Pyrites, Phosphates and Chemicals Ltd.