NITI Aayog analysing all sick, loss making CPSEs: Babul Supriyo

An analysis of all the sick and loss making central public sector enterprises (CPSEs) is underway at NITI Aayog in consultation with the ministries and the departments concerned.

"78, 70 and 77 CPSEs incurred losses during 2012-13, 2013-14 and 2014-15 respectively," Minister of State for Heavy Industries and Public Enterprises Babul Supriyo said in a written reply to the Lok Sabha.

Replying to another question, the minister said the reasons for losses differ from one CPSE to another.

He added however that "some common problems faced by loss making CPSEs include obsolete plants and machinery, heavy interest burden, resource crunch, low capacity utilisation, competition, low productivity, surplus manpower, high input costs etc".

Supriyo said the department of PSUs has issued guidelines for streamlining the mechanism for revival and restructuring of sick/incipient and weak CPSEs.

Under these guidelines, the administrative ministries and departments are expected to take measures for revival of loss making CPSEs on case to case basis.

In reply to a separate question on BHEL, he said the performance of the unit in 2015-16 was impacted mainly due to continued subdued business environment, resulting in reduced level of operations and "non-lifting of hold" in many of the stranded projects of various customers in which the company is engaged as a contractor and supplier.

He said BHEL has pursued initiatives in diversification, eyeing new business opportunities emerging in defence, railways, water, solar and also in the conventional power sector.

The government has also appointed two directors on the board of BHEL who contribute in overseeing the company's strategic direction, reviewing and monitoring corporate performance and safeguarding the interests of the shareholders.

"The performance of BHEL is reviewed by department of heavy industry on a regular basis," he added.