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Revival of Sick/ Loss Making Central Public Sector Enterprises

As per information available in the Public Enterprises Survey 2011-12, that was laid in the Parliament on 26.2.2013, and based on the definition of sickness given in the Govt. of India Resolution dated 6th December, 2004, constituting Board for Reconstruction of Public Sector Enterprise™s (BRPSE), there were 64 sick Central Public Sector Enterprises (CPSEs) as on 31.3.2012.

The concerned Administrative Ministries/Departments of the CPSEs are responsible for taking steps for revival/restructuring of their sick CPSEs and advise their CPSEs to prepare revival/restructuring plans. CPSEs may prepare revival/restructuring plans on their own or through consultants. The details of consultants, if any, so appointed are not maintained centrally.

Revival of sick CPSEs is a continuous process. Sick CPSEs are expected to turnaround upon implementation of revival plan. After recommendations of BRPSE, the Government has so far approved revival of 44 sick CPSEs envisaging total assistance of Rs. 27250 crores (cash assistance of Rs. 4825 crores in the form of infusion of funds and non-cash assistance of Rs.22425 crores in the form of waivers/write offs of interest/loans, conversion of loans into equity, etc.) from Government of India. In case of 2 sick CPSEs, namely, Bharat Coking Coal Ltd. and Hindustan Fluorocarbons Ltd., their Holding Companies namely, Coal India Ltd. and Hindustan Organic Chemicals Ltd. are implementing the revival plan. Till date, 15 sick CPSEs have been declared turn around which have posted profits consecutively for 3 or more years after the assistance by the Government.

This information was given by the Minister of Heavy Industries and Public Enterprises, Shri Praful Patel in a written reply to a question in Lok Sabha.

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