Ministry of Finance
DEPARTMENT OF EXPENDITURE
STARRED QUESTION NO. 201*
ANSWERED ON TUESDAY JULY 22, 2014
Decline in Value of Public Sector Units (PSUs)
*201. SHRI RAJEEV CHANDRASEKHAR:
Will the Minister of FINANCE be pleased to state;
(a) whether Government is aware that lakhs of crores of public money is locked up as investments in Public Sector Units (PSUs) which are now suffering heavy losses; and
(b) if so, the steps that Government proposes to take to address this decline in the value of PSUs, as this amounts to losses in public investments?
MINISTER OF FINANCE
(SHRI ARUN JAITLEY)
(a) & (b): A statement is laid on the Table of the House.
STATEMENT REFERRED TO IN REPLY TO PARTS (a) & (b) OF RAJYA SABHA STARRED QUESTION NO. *201 REGARDING "DECLINE IN VALUE OF PSUs" RAISED BY SHRI RAJEEV CHANDRASEKHAR, MP, FOR ANSWER ON JULY 22, 2014
(a) As per Public Enterprises Survey 2012-13, there are 79 Central Public Sector Enterprises (CPSEs) which have incurred losses, out of which 49 CPSEs are sick. The total investment (equity + long term loan) made in these 79 CPSEs is Rs.1,57,211.80 crore.
(b) Government of India have constituted the Board for Reconstruction of Public Sector Enterprises (BRPSE) vide Resolution dated 6th December 2004 as an advisory body to address the task of strengthening, modernization, reviving and restructuring of Central Public Sector Enterprises (CPSEs) and advise the Government on strategies, measures and schemes related to them. On the recommendations of BRPSE, the Government/holding companies have approved revival of 48 CPSEs as on 30.6.2014 envisaging a total assistance of Rs. 40,937 crore (cash assistance of Rs. 10,946 crore in the form of infusion of funds, and non-cash assistance of Rs. 29,997 crore in the form of waivers/write offs of interest/loans, conversion of loans into equity, etc.). Further, to enhance performance of the CPSEs and also promote accountability, DPE facilitates the signing of Memorandum of Understanding (MoU) between the CPSEs and the Government.