Loss-making firms: 43 CPSEs incurring losses for three years, says Patel

New Delhi: As many as 43 Central Public Sector Enterprises (CPSEs) including Air India, MTNL, BSNL and HMT Ltd have been incurring losses for the last three years, Parliament was informed today.

As on 31 March 2012 there were 260 CPSEs in the country, of which 225 were in operation, Minister for Heavy Industries and Public Enterprises Praful Patel said in a written reply to the Lok Sabha.[caption id="attachment_1070235" align="alignleft" width="380"] Heavy Industries and Public Enterprises Praful Patel. Image courtesy PIB[/caption]

"Out of these 225 CPSEs, 43 units have been incurring losses continuously for the last three years," he added.

ITI, NEPA, HMT Bearings, Hindustan Cables, Fertilizer Corporation and British India Corp are also among the loss making CPSEs.

Besides, Patel said that six state-owned firms have closed down in the last five years.

These include Bihar Drugs and Organic Chemicals Ltd, Indian Oil Technologies, Brushware Ltd, National Instruments Ltd and Bharat Yantra Nigam.

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To advise the government on the revival and restructuring of loss-making CPSEs, Patel said, the government has constituted the Board for Reconstruction of Public Sector Enterprises (BRPSE) in 2004.

However, the budgetary support for payment of wages and salaries for certain sick and loss-making PSUs and also to finance cash component for revival package is provided by the government through administrative ministries/departments, he added.

Asked if the government has set up a special investment fund for revival of these PSUs, he said: "No Special Investment Fund has been set up for the revival of loss-making units."

PTI