(a) the total number of Public Sector Undertakings (PSUs) in the country at present which have become sick;
(b) the number of PSUs which are running in losses during the last three years and the extent of their losses;
(c) whether loan or any other liability is also pending against the said PSUs;
(d) if so, the details thereof;
(e) whether any action plan has been initiated for modernisation of PSUs incurring losses or those on the verge of incurring losses; and
(f) if so, the details thereof?
THE MINISTER OF HEAVY INDUSTRIES & PUBLIC ENTERPRISES (SHRI VILASRAO DESHMUKH)
(a) to (f): A statement is laid on the Table of the House.
statement in reply to Lok Sabha Starred Question No.387 scheduled for 22-04-2010, regarding
Modernisation of PSUs by Hon`ble Members S/Shri Jagdish Sharma and Shri Harish Chaudhary.
(a): As per the provisions of Sick Industrial Companies (Special Provisions) Act, 1985 (SICA),
a loss making unit is considered `sick` if the industrial company is registered for not less
than five years at the end of any financial year and its accumulated losses are equal to or have
exceeded their net worth. As per this definition, there were 64 sick Central Public Sector
Enterprises (CPSEs) as on 31-03-2009 (Annex-I).
However, according to the Government Resolution, constituting Board for Reconstruction
of Public Sector Enterprises (BRPSE), a company is considered `sick` if it has accumulated losses
in any financial year equal to 50% or more of its average net worth during 4 years immediately
preceding such financial year and /or a company which is a sick company within the meaning of
Sick Industrial Companies (Special Provisions) Act, 1985 (SICA). Based on this definition, there
were 73 sick CPSEs as on 31-03-2009 (Annex-II).
(b) to (d): There were 38 Central Public Sector Enterprises (CPSEs), which were incurring
losses continuously during the last 3 years. The combined loss of these CPSEs stood at
Rs.4,303 crore, Rs.3,679 crore and Rs.4,075 crore during 2008-09, 2007-08 and 2006-07
respectively. An amount equal to Rs.21,687 crore was pending, for repayment as long term
loans against these CPSEs as on 31,3.2009. CPSEs wise details of losses during the past three
years, and the long term loans pending against them is given at Annex-III.
(e) & (f): The number of loss making CPSEs has been continuously declining over the years.
It came down from 105 CPSEs in 2002-03 to 54 in 2008-09. It is the concerned administrative
Ministries which take steps for upgradation and modernization of Central Public Sector
Enterprises (CPSEs) on a case to case basis. The Government constituted the BRPSE in 2004 to
advise the Government for strengthening, modernization, revival and restructuring of public
sector enterprises on proposals submitted by the administrative Ministries / Departments
controlling these CPSEs. Out of these 38 cases incurring losses continuously during the last
three years, the BRPSE has considered and recommended the cases of 27 CPSEs for revival /
restructuring (Annex-IV). The remaining cases are with the concerned administrative Ministries.