Chapter-12

Revival and Restructuring of Sick/Loss Making CPSEs

Some of the Central Public Sector Enterprises (CPSEs) have been incurring losses continuously for the last several years. The accumulated loss in many of these cases has exceeded their net worth. Sickness in CPSEs has been the continuing concern of the Government. There has, nonetheless, been significant improvement in the overall condition of these enterprises over the years. In comparison to 105 loss making CPSEs in March, 2002, there were 59 loss making CPSEs in March, 2010 (Table-12.1).

Table 12.1 Loss making CPSEs (200203 to 2009-10) Year No. of Loss Aggregate Loss, making CPSEs, during the year during the year (` in crore) 105 10972 89 8522 73 9003 63 6845 61 8526 54 10303 55 14621 59 15842 No. of sick CPSEs* 81 75 83 78 73 No. of sick CPSEs** 111 100 90 81 74 46 46 45 Accumulated losses of sick CPSEs** 76721 73487 82352 83554 89064 72820 68577 63828

200203 200304 200405 200506 200607 200708 200809 2009-10

Note: *As per the definition of BRPSE ** As per the defination of BIFR.

12.1 Sickness in CPSEs

The reason for sickness varies from enterprise to enterprise. In some cases, the cause of sickness is historical; textile companies which were taken over from the private sector on social consideration for protecting employment of workers in early seventies could not be modernized quickly. British India Corporation, Bird Jute & Exports and NTC belong to this group. Besides these (textile) companies, there have been other enterprises that were taken over from the private sector but could not be modernized. These include engineering and refractory enterprises like Bharat Wagons & Engineering, Praga Tools, Burn Standard, Braithwaith & Co., Richardsan and Crudass Ltd., drug companies like Bengal Chemicals & Pharmaceuticals Ltd., transportation/shipping companies like Hooghly Dock & Port Engineering Ltd., Central Inland Water Transport Corporation and consumer goods companies like Tyre Corporation of India and Hooghly Printing Co. Ltd. The other group of sick companies (other than those taken over) is green-field companies. These companies became sick over the years on account of high manpower cost, technological obsolescence and
Revival and Restructuring of Sick/Loss Making CPSEs

competition from the private sector. These include fertilizer companies like Fertilizer Corporation of India, Hindustan Fertilizer Corporation, Pyrites, Phosphates and Chemicals Ltd., chemicals and drugs companies like Indian Drugs & Pharmaceuticals Ltd., Hindustan Insecticides Ltd., and Hindustan Antibiotics Ltd. Some of the loss making companies, such as, Nagaland Pulp & Paper Company Ltd., Jute Corporation of India and Cotton Corporation of India have had macro-economic objectives to serve like development of backward areas, providing remunerative prices to farmers, etc. In addition to the above reasons, the other problems common to most sick and loss making CPSEs have been lopsided debt-equity structure, weak marketing strategies and slow decision making process. Attempts have, therefore, been made to overcome sickness in these CPSEs through various policy initiatives. The Statement on Industrial Policy (1991), and other policy pronouncements by the Government have addressed this issue from time to time.

12.2 Strategies for revival/restructuring

Net loss in a company means excess of expenditure

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(including depreciation, interest, taxes, extra ordinary items, prior period adjustments but before providing appropriations to reserves) over operating income. If, however, the enterprise incurscash loss, equal to net loss and provision for depreciation, then it is usually considered a case fit for recommending for restructuring, revival or closure. Some of the strategies adopted for restructuring / revival of sick CPSEs are mentioned below: (i) Financial restructuring: Financial restructuring involves investment in CPSEs by the Government in the form of equity participation, providing loan (plan/nonplan) / grants and/or write-off of past losses as well as changing the debt equity ratio. Measures such as waiver of loan/interest/penal interest, conversion of loan into equity, conversion of interest including penal interest into loan, moratorium on payment of loan/ interest, Government guarantee, sale of fixed assets including excess land, sacrifices by State Government, one-time settlement with banks/financial institutions, etc. (ii) Business restructuring: Business restructuring involves change of management, hiving off viable units from CPSEs for formation of separate company, closure of unviable units, formation of joint ventures by induction of partners capable of providing technical, financial and marketing inputs, change in product mix, improving marketing strategy, etc. on case to case basis. (iii) Manpower rationalization: Salaries and wages are often a major component of cost for anenterprise. In order to shed excess manpower, CPSEs have often resorted to Voluntary Retirement Scheme (VRS) from time to time. In case of CPSEs found unviable and where a decision has been taken to close the unit, it is the Voluntary Separation Scheme (VSS) that is introduced. Retrenchment of employees is adopted only as the last resort and in exceptional circumstances. The revival packages granted by the Government has helped these enterprises in a big way in improving their conditions. Some of the sick and loss making enterprises have turned around and recorded profit during the last two years.

their net worth, may be referred to the Board for Industrial and Financial Reconstruction (BIFR). The BIFR, , in turn, may either sanction suitable revival/ Table 12.2 Registration of CPSEs with BIFR Year 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 No. of CPSEs 30* 2* 4* 1 2 3 3 3 3 2 Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 Total No. of CPSEs 3 2 4* 2 1 1 0 0 0 64

* This includes the subsidiaries of NTC, (which has been registered again in 2008 after merger) as well as other CPSEs, that has also merged.

rehabilitation schemes ( in case of enterprises which are viable) or recommend winding up/closure (in respect of enterprises considered unviable). During the period of the last eighteen years, that is, 1992 to 2010, 64 CPSEs have been referred to the BIFR The year-wise registration of CPSEs with BIFR is given in Table 12.2 above. Although a total number of 64 CPSEs have been referred to BIFR (uptill 2007), there are only 45 CPSEs that are in operation. Two CPSEs, namely, Bharat Refractories and Vignyan Industries Limited and North Eastern Regional Agricultural Marketing Corporation Limited have since been declared No Longer Sick by the Board. This does not include Indian Iron Steel Co. Limited and Bharat Refractories Limited as they have been merged with Steel Authority of India Limited . In addition, Bharat Immunologicals and Biologicals Corporation Limited, Hindustan Salts Limited, Maharashtra Elektrosmelt Limited, Hindustan Insecticides Limited and Hindustan Organic Chemicals Limited have been dropped from the list of sick industrial CPSEs by BIFR on their net worth becoming positive. Cases of four CPSEs have been declared as non-maintainable by the Board as either the matter had become time barred for reference to the Board or on account of the net worth of the CPSE becoming positive or the CPSE was found not fulfilling the conditions of being industrial company as defined under SICA or on some other grounds. Moreover, one of these companies, namely, Manipur State Drugs and Pharmaceuticals Limited
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12.3 Sick Industrial Companies (Special Provisions) Act, 1985 (SICA)

The Sick Industrial Companies (Special Provision) Act, 1985 (SICA) brought the CPSEs under its purview in 1991 (made effective from 1992). Under the provisions of SICA, the industrial CPSEs whose accumulated losses are equal to or have exceeded

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Table 12.3 Status of CPSEs registered with BIFR (as on 30.06.2010) Sl. No. Particulars 1. Revival Scheme sanctioned 2. Draft Scheme circulated under examination / under process 3. Declared no longer sick 4. Dropped on net worth becoming positive 5. Dismissed as nonmaintainable 6. Winding up recommended and closed 7. Winding up recommended 8. Winding up notice issued 9. Sanctioned by AAIFR 10. Failed and re-opened 11. DRS awaited 12. Deregistered with BIFR / Others Total Number 13 6

2 5 4 15 6 1 1 1 8 2 64

alia, on measures to restructure/revive, both industrial and non-industrial CPSEs. The Board comprises of Chairman in the rank of Minister of State, three non-official Members and three official Members including Secretary, Department of Expenditure, Secretary, Department of Disinvestment and Secretary, Department of Public Enterprises (DPE). In addition, Chairman, Public Enterprises Selection Board, Chairman, Standing Conference on Public Enterprises and Chairman, Oil and Natural Gas Corporation Limited are permanent invitees to the meetings of BRPSE. Secretaries to the Government of the Administrative Ministry/Department concerned with the CPSE taken up for consideration by the Board are Special Invitees. There is a full-time Secretary for BRPSE in the rank of Additional Secretary to the Government of India. The Board is located in the Department of Public Enterprises (DPE). DPE provides necessary secretarial assistance to the Board. For the purpose of making a reference to BRPSE, a company is considered sick if it has accumulated losses in any financial year equal to 50% or more of its average net worth during 4 years immediately preceding such financial year, and/or is a company within the meaning of Sick Industrial Companies (Special Provisions) Act, 1985 (SICA). The concerned Administrative Ministries/ Departments are required to send proposals of their CPSEs identified as sick for consideration of BRPSE. Other loss making CPSEs may be considered by the Board either suo moto or upon reference by the administrative Ministry, if it is of the opinion that revival/restructuring is necessary for checking its incipient sickness (incurring loss for two consecutive years) and making the CPSE profitable. The Board is expected to make its recommendations within 2 months of the date of receipt of the complete proposal from the Administrative Ministry/Department. As per the definition of sick CPSEs given above and the performance evaluation of CPSEs for 200809 and previous years, 73 CPSEs were referable to BRPSE. Up to September, 2010, cases of 67 sick CPSEs have been referred to BRPSE; out of which, the Board has made recommendations in respect of 62 cases. In addition, the Board has also recommended to the Government to accord in principle approval for rescinding of its earlier decision to close the units of Fertilizers Corporation of India (FCIL) and Hindustan Fertilizers Corporation Ltd. (HFCL) and to explore various options for their revival. Out of these 62 cases, the Government has approved 40 revival proposals of CPSEs and winding up of 2(two) enterprises namely Bharat Opthalmic Glass Limited and Bharat Yantra Nigam Ltd. as on

has been closed. The status of the 64 sick industrial CPSEs registered with BIFR as on 30.6.2010 is given at Table 12.3. The BIFR has already disposed of 47 cases of CPSEs either through sanctioning revival schemes (13 cases), or recommending winding up (21 cases) or declaring no longer sick (2 cases) or dropping due to net worth becoming positive (5 cases) or dismissing the cases as non-maintainable (4 cases) (Annex-12.1). The BIFR is yet to take any view on 14 cases of CPSEs. The process of appointment of Official Liquidator (OL) for winding up of CPSEs by the BIFR has been slow. The process of sanctioning of revival / rehabilitation schemes has also been slow on account of involvement of multiple agencies, such as, delay in finalization of revival schemes, lack of funds, lack of adequate powers with BIFR, lack of proper monitoring of sanctioned revival schemes and delay in winding up of sick companies etc.

12.4 Board for Reconstruction of Public Sector Enterprises (BRPSE)

The Government established the Board for Reconstruction of Public Sector Enterprises (BRPSE) in December, 2004 to advise the Government, inter
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30.9.2010 envisaging a total expenditure of ` 23612.45 crore including ` 3289.64 crore as cash assistance and ` 20322.81 crore as non-cash assistance. The enterprisewise details of cash and non-cash assistance in respect of approved proposals are given in Annex-12.2. Out of the 42 cases approved by the Government till September, 2010, 15 were approved during 2005-06, 11 cases were approved during 2006-07, 6 cases were approved during 2007- 08, 5 cases were approved during 2008- 09, 3 cases were approved in 2009-10 and 2 cases have been approved during Table 12.4 No. of CPSEs 1.Revival through restructuring package 25 2.Revival through joint venture / disinvestment 8 3.Revival through merger/takeover / transfer 7 4.Closure of CPSE 2 Total 42 20010- 11 (upto September, 2010). The approval of the Government in respect of the aforesaid 42 PSEs fall under the following broad categories. Further, the Government has also given in principle approval to explore various options for the revival of Hindustan Fertilizer Corporation Ltd. and Fertilizer Corporation of India Ltd. subject to confirmed availability of gas. The Government have established an Empowered Committee of Secretaries (ECS) with the mandate to evaluate all options of revival of closed units of FCI and HFCL, and make suitable recommendations for consideration of the Government. The Board during the period from October,2009 to September,2010 reviewed the status of implementation of revival package sanctioned by the Government to 12 CPSEs namely (i) HMT Machine Tools Ltd., (ii) HMT Bearings Ltd., (iii) Praga Tools Ltd., (iv) Hindustan Antibiotics Ltd.(HAL), (v) Hindustan Organic Chemicals Ltd.(HOCL), (vi) Andrew Yule & Co. Ltd., (vii) Wagon & Engineering Company Ltd., (viii) Eastern Coal Fields Ltd., (ix) Central Inland Water Transport Corporation Ltd., (x) Bharat Heavy Plate and Vessels Ltd., (xi) Instrumentation Ltd. and (xii) Bharat Refractories Ltd. and also the status of its recommendations in respect of 13 CPSEs namely (i) Hindustan Cables Ltd.(HCL) (ii) Elgin Mills Company Ltd., (iii) HMT Ltd., (iv) HMT Watches Ltd., (v) HMT Chinar Watches Ltd., (vi) ITI Ltd., (vii) Indian Drugs & Pharmaceuticals Ltd. (IDPL), (viii) IDPL (Tamil Nadu) Ltd., (ix) Bihar Drugs & Organic Chemicals Ltd., (x) Hindustan Steelworks Construction Ltd. (HSCL), (xi) Hoogly Dock & Port Category

Engineers Ltd. (HDPEL) (xii) Hindustan Fertilizers Corporation Ltd.(HFCL) and (xiii) Fertilizers Corporation of India Ltd.(FCIL)

12.5 Revival through Merger, Transfer & Takeover

The Government approved the transfer of Bharat Heavy Plates and Vessels Ltd. to BHEL on 26.11.2007 and merger of Bharat Refractories Ltd. with SAIL on 24.4.2008. The BIFR, furthermore, gave its approval for the merger of Praga Tools Ltd. with HMT Machine Tools Ltd.(w.e.f.1.4.2007). The Government also approved the transfer of Bharat Wagon & Engineering Co. Ltd. (BWEL) from D/o Heavy Industries to M/o Railways on 7.2.2008; its administrative control was transferred to Ministry of Railways on13.8.2008. The Government also approved the transfer of administrative control of Hindustan Shipyard Ltd. from M/o Shipping to M/o Defence on 24.12.2009. The Government further approved the transfer of Refractory Unit (at Salem) of Burn Standard Company Ltd.(BSCL) to SAIL under M/o Steel and the transfer of the administrative control of BSCL(excluding Refractory unit at Salem) and Braithwaite and Company Ltd. from D/o Heavy Industry to M/o Railways on 10.6.2010 . In addition, the Government approved the revival package for Nagaland Pulp & Paper Co. Ltd. on 23.11.2006 with a total assistance of ` 787.54 crores (Rs. 552.44 crores cash and ` 235.10 crores as noncash). The Government has also approved the second revival package for Heavy Engineering Corporation (HEC), on 4.9.2008 at a total cost of ` 615.43 crores (Rs. 310 crores as cash and ` 305.43 crores as noncash). Similarly, the Government approved a one time interim grant of ` 200 crores to FACT as Non-plan funds on 7.2.2008 to enable it to sustain operations till 31.3.2008. This package is additional to the revival package approved in March, 2006. In order to revive, ITI Ltd.,furthermore,the Government have sanctioned a sum of ` 1427 crores (Rs. 1403 crores as cash and ` 24 crores as non-cash) from December, 2004 till January, 2009. Further, the Government has also approved, inter alia, `3000 crores towards revival of ITI Ltd on 20.2.2009. The Government have approved the second revival package for NTC for `6129.75 crores by way of waiver of Government of India loans and interest thereon. The Government has also approved the proposal of converting Semi-Conductor Complex Ltd. into a Society under the Department of Space on 23.2.2006. The proposal for transfer of assets, liabilities and manpower of National Instruments Ltd. (Kolkata) to Jadhavpur University, Government of West Bengal was approved on 8.2.2007. The Government has approved infusion of ` 800 crores by way of equity in National Aviation Corporation of India Ltd. on 18.2.2010, in view of the critical cash crunch being faced by the company. (Annex-12.3).
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Annex-12.1 Details on the CPSEs Registered with BIFR as on 30.06.2010 S. No. Case No. and year of reference (2) CPSE Date of Orders

(1) I. 1. 2.

(3)

(4)

Declared No Longer Sick 512/1992 Vignyan Industries Ltd., Tarkere (Karnataka) 503/1997 North Eastern Regional Agri. Marktg. Corpn., Guwahati (Assam) Dropped (Positive Networth) 502/1997/ Bharat Immunologicals & Biologicals Corporation 503/1998 Limited, Buland Sahar (Uttar Pradesh) 502/2000 Hindustan Salts Limited, Jaipur (Rajasthan) 501/2002 / Maharashtra Elektrosmelt Ltd., Mumbai (Maharashtra) 502/2003 501/2004 Hindustan Insecticides Ltd., New Delhi (Delhi) 501/2005 Hindustan Organic Chemicals Limited, Rasayani, Raigad (Maharashtra) Dismissed as Non-maintainable 502/1992 / Nagaland Pulp & Paper Co. Ltd., Mokokchung, 601/1998 (Nagaland) 504/1997 Manipur State Drugs & Pharmaceuticals Ltd., Imphal (Manipur) $$ 502/2002 Central Coalfields Ltd., Ranchi (Jharkhand) 517/1992/ Biecco Lawrie Limited, Kolkata (West Bengal) @ 504/2002 Scheme Sanctioned by AAIFR 502/1999 Hindustan Vegetable Oils Corpn. Ltd., New Delhi (Delhi) @ Revival Scheme sanctioned 518/1992 The British India Corpn. Ltd., Kanpur, (Uttar Pradesh) @ 521/1992 Projects and Development India Ltd., Dhanbad (Jharkhand) 523/1992 Tyre Corporation of India Ltd., Kolkata (West Bengal) @

27.5.2003 * 20.8.2001*

II. 3. 4. 5. 6. 7.

1.8.2002 22.8.2005 / 15.12.2008* 27.6.2005* 18.9.2007 * 21.11.2005 / 28.05.2008

III. 8. 9. 10. 11.

13.11.1995 / 25.5.2007* 17.11.1997 29.11.2002* 27.3.2003 *

IV. 12.

7.12.2001 / 23.07.2008

V. 13. 14. 15.

17.12.2002/ 29.11.2007 26.3.2004 / 19.4.2006 * 20.2.1997 / 10.3.2008 / 19.05.2009 / 21.12.2009 / 03.03.2010* 17.10.1995 / 29.6.2006 * 1.10.2002 / 13.5.2008 / 04.08.2008

16. 17.

528/1992 531/1992

Braithwaite & Co. Ltd., Kolkata (West Bengal) @ National Instruments Ltd., Kolkata (West Bengal)

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18. 19.. 20. 21. 22. 23. 24. 25. VI. 26. 27. 28. 29. 30. 31.

509/1993 507/1994 501/1996 501/1997 501/1998 / 501/2000 504/1995 / 502/2001 504/1995 / 502/2001 501/2006

Instrumentation Ltd., Kota (Rajasthan) Hindustan Fluorocarbons Ltd., Hyderabad (Andhra Pradesh) @ Cement Corporation of India Ltd., New Delhi (Delhi) Hindustan Antibiotics Limited, Pune (Maharashtra) $$ Eastern Coalfields Limited, Burdwan (West Bengal) @ Bharat Coking Coal Ltd., Dhanbad (Jharkhand) Andrew Yule and Company Ltd., Kolkata (West Bengal) @ HMT Machine Tools Limited, Bangalore (Karnataka)

23.12.1998 / 24.05.2006 / 01.10.2009* 24.7.2003* 05.12.2005 / 21.3.2006 / 17.06.2008* 5.6.2007 / 14.10.2008 01.06.1998/ 2.11.2004 / 12.6.2007* 11.2.2004 / 18.05.2009 / 28.10.2009* 20.8.2007/ 30.10.2007* 2.11.2006 / 12.6.2008

Winding up Recommended 507/1992 Triveni Structurals Ltd. , Allahabad (Uttar Pradesh) 511/1992 Heavy Engineering Corpn. Ltd., Ranchi (Jharkhand) 514/1992 Orissa Drugs & Chemicals Ltd., Bhubaneswar (Orissa) 515/1992 Fertilizers Corpn. of India Ltd., New Delhi (Delhi) 503/1995 Hindustan Photofilms Mfg. Co. Ltd., Ootacamund (Tamilnadu) 502/1996 Maharashtra Antibiotics & Pharma. Ltd., Nagpur (Maharashtra) $$ CPSEs recommended for winding up and have been closed $$ 505/1992 Bharat Gold Mines Ltd., Kolar Gold Fields (Karnataka) 506/1992 Tannery and Footwear Corporation of India Ltd., Kanpur (Uttar Pradesh) 508/1992 Cycle Corporation of India Limited, Kolkata (West Bengal) @ 510/1992 Mining and Allied Machinery Corporation Ltd. , Durgapur (West Bengal) 513/1992 National Bicycle Corporation of India Ltd., Mumbai (Maharashtra) @ 520/1992 Bharat Process and Mechanical Engineers Ltd., Kolkata (West Bengal) @ 524/1992 Weighbird India Limited, Kolkata (West Bengal) @ 526/1992 Bharat Brakes & Valves Ltd., Kolkata (West Bengal) @ 527/1992 Cawnpore Textiles Ltd., Kanpur (Uttar Pradesh) @ 529/1992 Smith Stanistreet & Pharmaceuticals Ltd., Kolkata (West Bengal) @ 532/1992 Bharat Ophthalmic Glass Ltd., Durgapur (West Bengal) 538/1992 Bengal Immunity Limited, Kolkata (West Bengal) @ 504/1994 Southern Pesticides Corporation Limited, Hyderabad (Andhra Pradesh) 506/1994 Rayrolle Burn Ltd., Kolkata (West Bengal) @ 503/1999 Pyrites, Phosphates & Chemicals Ltd., Rohtash (Bihar)

5.6.2003 6.7.2004* 8.4.2003* 2.4.2004 30.1.2003 4.7.2000 / 16.12.2008 / 17.06.2010

32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46.

12.6.2000 14.2.1995 10.7.2000 29.6.2001 20.12.1993 22.7.1996 17.2.1997 27.9.2002 19.1.1995 3.12.2001 19.6.2003 25.2.2003 1.11.2001 13.7.2001 20.11.2002

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VII. 47. VII. 48. 49. IX. 50. 51. 52. 53. 54. 55.

Winding up Notice Issued 503/505/2002 Hindustan Cables Ltd., Kolkata (West Bengal) Others / Abated / Deregistered from BIFR 501/1992 Bharat Pumps & Compressors Ltd., Allahabad (Uttar Pradesh) 519/1992 The Elgin Mills Co. Ltd., Kanpur (Uttar Pradesh) @ $$ Declared Sick / / Under Examination / Process / 503/1992 Indian Drugs and Pharmaceuticals Limited, Gurgaon (Haryana) 506/1993 National Jute Manufactures Corporation Ltd. Kolkata (West Bengal) 588/1994 Burn Standard Co. Ltd., Kolkata (West Bengal) @ 501/1999 501/2001 503/2004 Birds Jute and Exports Ltd., Kolkata (West Bengal) @ Bharat Wagon & Engg. Co. Limited , Patna (Bihar) @ Bharat Heavy Plates and Vessels Limited, Visakhapatnam (Andhra Pradesh)

21.03.2003/ 25.07.2008

6.2.2007* 13.3.2007

28.3.2006 / 29.9.2008 8.7.2004 / 24.11.2008 / 05.03.2009* 16.4.2007 / 30.9.2008 / 12.11.2009 24.6.2004 / 07.08.2008 11.2.2004 / 25.11.2008 / 24.06.2009 / 16.11.2009 6.10.2005 / 29.08.2008 / 25.03.2009

X. 56. 57. 58. 59.

Draft Revival Scheme (DRS) Awaited 504/1992 Scooters India Ltd., Lucknow (Uttar Pradesh) 509/1992 Richardson & Crudass (1972) Ltd., Mumbai (Maharashtra) @ 516/1992 Hindustan Fertilizer Corpn. Ltd., New Delhi (Delhi) 502/1998

60. 61. 62. 63.

504/2004 505/2004 502/2005 501/2007

1.7.2000 / 17.06.2010 24.9.2007 / 04.09.2008 / 27.05.2009 / 10.09.2009 1.2.2007 / 05.12.2008 / 26.03.2009 / 19.10.2009 NEPA Ltd., Nepanagar (Madhya Pradesh) 29.5.2007 / 15.05.2008 / 26.02.2009 / 11.09.2009 / 21.6.2010 ITI Limited, Bangalore (Karnataka) 3.10.2005 / 27.11.2008 / 23.02.2009 / 30.12.2009 Tungabhadra Steel Products Limited, Tungabhadra Dam 4.8.2005 / 11.12.2006 / (Karnataka) 09.03.2009 / 24.08.2009 HMT Bearings Limited, Hyderabad (Andhra Pradesh) 13.2.2006 / 23.04.2009 / 12.11.2009 Madras Fertilizer Ltd., Chennai (Tamilnadu) 02.04.2009 / 15.10.2009*

XI. 64.

Failed & Reopened 533/1992 Bengal Chemicals & Pharmaceuticals Ltd., Kolkata (West Bengal) @

31.3.1995 / 03.02.2009

@ Taken over PSEs (24), * Profit (after adjustments) during 2009-10 (22), $$ since closed (7), % No More a CPSE(12) Note : Since Mandya National Paper Mills Limited wound up, Jessop & Co. Ltd. privatized, U.P. Drugs and Pharmaceuticals Limited transferred to the U.P. Government, All 9 subsidiaries of NTC (Holding) Ltd. merged with NTC (Holding) , Indian Iron and Steel Co. Limited merged and Bharat Refractories Ltd. (BRL) with SAIL and Praga Tools Ltd. merged with HMT Ltd. These CPSEs have not been included in the list of BIFR referred CPSEs.

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Annex-12.2 Cash and Non-cash Assistance approved by the Government in respect of BRPSE recommended proposals upto 30.9.2010 S. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. Name of the CPSE Hindustan Salts Ltd. NTC including its subsidiaries Bridge & Roof Co. (India) Ltd. BBJ Construction Co. Ltd. HMT Bearings Ltd. Praga Tools Ltd. Braithwaite & Company Ltd. British India Corporation Ltd. Central Inland Water Transport Corporation Ltd. Heavy Engineering Corporation Ltd. Cement Corporation of India Ltd. Richardson & Cruddas Ltd. Hindustan Antibiotics Ltd. Hindustan Organic Chemicals Ltd. Fertilizers & Chemicals (Travancore) Ltd. Tungabhadra Steel Products Ltd. Bharat Ophthalmic Glass Ltd. ## Hindustan Insecticides Ltd. Mineral Exploration Corporation Ltd. Central Electronics Ltd. Eastern Coal Fields Ltd. Bharat Pumps and Compressors Ltd. Bengal Chemicals & Pharmaceuticals Ltd. HMT Machine Tools Ltd. MECON Ltd. Andrew Yule & Co. Ltd. Hindustan Copper Ltd. Bharat Yantra Nigam Ltd.## Bharat Heavy Plate Vessels Ltd. State Forms Corporation of India Ltd. Bharat Refractories Ltd. Tyre Corporation of India Ltd. NEPA Ltd. Bharat Wagon &Engineering Company Ltd. Konkan Railway Corporation Ltd. National Projects Construction Corporation Ltd. Instrumentation Ltd. Hindustan Prefab Ltd. Assistance (` In Crores) Cash # Non-Cash @ 4.28 73.30 39.23 60.00 42.92 54.61 7.40 43.97 5.00 209.71 4.00 280.21 47.35 73.60 280.00 102.00 184.29 137.59 250.00 9.80 --* 3.37$ 207.19 723.00 93.00** -- & -3.82 -21.21 ---52.79~ 857.05 -48.36 -1116.30 1267.95 267.57 NA 670.37 -267.29 104.64 16.28 --* 153.15 233.41 157.80 23.08 457.14 612.94 7.55 --124.42 479.16 1018.45 -258.73~ 3222.46 219.43*** 549.36 128.00

Total 77.58 39.23 102.92 54.61 51.37 214.71 284.21 47.35 353.60 1218.30 1452.24 405.16 250.00 670.37 9.80 267.29 104.64 16.28 ---* 156.52$ 440.60 880.80 116.08 457.14 612.94 11.37 --$$ 145.63 479.16 1018.45&& --@@ 311.52~ 4079.51 219.43*** 597.72$$$ 128.00

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39. 40. 41. 42.

Hindustan Shipyard Ltd. National Jute Manufactures Corporation Ltd. Burn Standard Company Ltd. National Film Development Corporation Ltd. Total

-338.15 14.16&&& 3.00 3289.64*

-6815.06 1139.16 28.40 20322.81*

--### 7153.21 1153.32 31.40 23612.45*

# Cash Assistance may involve budgetary support through equity/loan/grants @ Non-cash Assistance may involve waiver of interest, penal interest, GOI loan, Guarantee fee, conversion of loan into equity/ debentures etc. ## Government have approved closure/winding up of these CPSEs & The issue of infusion of funds by GOI or by Joint Venture or a Strategic Partner will be sorted out by M/o Finance and the M/o Heavy Industries. * The revival plan approved by the Government inter alia envisaged non-cash assistance of `2470.77crores and waiver of service charges of `14 crores per annum from 2004-05 from Coal India Ltd. $ In addition ONGC and BHEL would extend cash support to the extent of `150 crores and `20 crores respectively. ** Excludes continuation of 50% interest subsidy not exceeding `6.50 crores per annum on VRS loans $$ Cabinet approved in principle the takeover of BHPV by BHEL with the direction that the valuation of BHPV be carried out prudently on the basis of established principles and if the takeover is not found feasible, the matter be brought back before the Cabinet. && Parliament had approved the Tyre Corporation of India Ltd. (Disinvestment of Ownership) Bill 2007 for changing the public sector Enterprises Character of the company. Disinvestment after cleaning the balance sheet. @@ Proposal to revive NEPA Ltd through JV route in the private sector and a Bill seeking Parliamentary approval for induction of such JV has been introduced in Parliament. *** In addition Govt. had also approved the conversion of cumulative interest due & accrued on GOI loan as on the date of conversion into equity capital and further written down to 10% of value. $$$ Interest free mobilization advance of `30 crores from BHEL for technological up-gradation and diversification which would be repaid through supplies to be made to BHEL against their orders. Interest free advance of `25 crores from BHEL to ILK at the beginning of each year for the next three years from 2008-09 which will be adjusted against supplies to BHEL in the same year.

Annex-12.3 Additional assistance approved by the Government for revival/restructuring of CPSEs independent of the recommendation of BRPSE S. No. 1 2 3 4* 5* 6 7 8* 9 Name of the CPSE National Instruments Semi-Conductor Complex Ltd. Jute Corporation of India Fertilizers & Chemicals Travancore Ltd. Heavy Engineering Corporation Ltd. Nagaland Pulp & Paper Co. Ltd ITI Ltd. National Textiles Corporation National Aviation Co. of India Ltd. Total Assistance (` In Crores) Cash # Non-Cash @ ----36.59 200.00 310.00 305.43 552.44 235.10 4403.00 24.00 -6129.75 800.00 -6302.03 6694.28

Total --36.59 200.00 615.43 787.54 4427.00 6129.75 800.00 12996.31

* These CPSEs are included in the list of CPSEs approved by Government on the recommendations of BRPSE.

Revival and Restructuring of Sick/Loss Making CPSEs

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