Air India Express Ltd., Bharat Coking Coal Ltd., BHEL Electrical Machines Ltd. and Mahanagar Telephone Nigam Ltd. (MTNL) are among the 56 sick public sector enterprises, which have their net worth in negative.
Air India Express Ltd., Air India Engineering Services Ltd., Bharat Coking Coal Ltd., BHEL Electrical Machines Ltd., Hindustan Photo Films Manufacturing Co. Ltd., Indian Drugs & Pharmaceuticals Ltd. and Mahanagar Telephone Nigam Ltd. (MTNL) are among the 56 sick public sector enterprises, which have their net worth in negative. In 2017-18, the collective net worth of such sick PSUs was in negative of Rs 88,556 crore and was in a cumulative loss of Rs 1,32,360 crore.
With a net worth of Rs 24,893 crore in negative and a loss of Rs 53,914 crore, Air India Ltd. has topped the list of sick PSUs in 2017-18, according to a Rajya Sabha answer. The number of sick Central Public Sector Enterprises (CPSEs) have increased over the three years beginning from 2015-16. In 2015-16, 2016-17 and 2017-18, there were 48, 54 and 56 sick CPSEs, as per the information available in Public Enterprises Survey laid in both the Houses of Parliament.
“The Department of Public Enterprises has issued Guidelines for streamlining the mechanism for revival and restructuring of sick/incipient sick and weak Central Public Sector Enterprises”, said Arvind Ganpat Sawant, Minister of Heavy Industries and Public Enterprises in Rajya Sabha. He also added that the concerned ministries or departments follow the extant guidelines of the Government in respect of the sick/loss making CPSEs on case to case basis. He further said that according to the guidelines, those CPSEs which are having a negative net worth, are considered as sick.
On the question related to fresh initiatives taken by the Government for their improvement, the minister replied that the improvement in the performance of CPSEs is a continuous process. Enterprise-specific measures for their turnaround are taken by the concerned ministries and departments. These include business restructuring, such as formation of joint ventures, modernization and improved marketing strategies, corporate governance, the professionalization of board of CPSEs, etc. He added that the Government has approved revival, restructuring or merger plans for 6 sick or loss-making CPSEs, which are, Brahmaputra Valley Fertilizer Corporation Ltd., Hindustan Steelworks Construction Ltd., Richardson & Cruddas Ltd., NEPA Ltd., Hooghly Printing Company Ltd., and Konkan Railway Corporation Ltd.