Tuesday, April 24, 2012


Loss Incurring PSUs

            As on 31st March, 2011, there were 62 Central Public Sector Enterprises (CPSEs),  which were  incurring losses during 2010-11.  Loss of CPSEs during the last three years is given below:



            Years             Loss making CPSEs(No’s)            Losses (Rs. in crore)

2010-11                     62                                                  21693

2009-10                    60                                                   16231       

2008-09                     55                                                  14621

(Source:  Public Enterprises Survey (2010-11).



The reasons for increase or decrease in losses are enterprise specific, which inter-alia includes lack of working capital, surplus manpower, old plants and machinery, obsolete technology, heavy interest burden, weak marketing strategy, etc.



As on March 31, 2011, there were 49 CPSEs with negative net worth amounting to Rs. 68404 crore at the aggregate/consolidated level.



The Government set up the Board for Reconstruction of Public Sector Enterprises (BRPSE) in December, 2004 to advise the Government on revival of sick/loss making CPSEs.  Based on the recommendations of BRPSE, the Government has been taking measures to revive sick & loss making CPSEs through financial restructuring, business restructuring, modernization and manpower rationalization.



The above information was given by the Minister for Heavy Industries & Public Enterprises Shri Praful Patel in a written reply in the Rajya  Sabha today. 

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