Disinvestment of sick PSUs
GOVERNMENT OF INDIA
MINISTRY OF HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
QUESTION NO: 58
ANSWERED ON: 07.07.2014
DISINVESTMENT OF SICK PSUS
58 . Prof. SAUGATA ROY
Will the Minister of HEAVY INDUSTRIES AND PUBLIC ENTERPRISES be pleased to state:-
(a) whether the Government has identified any sick Public Sector Undertakings for disinvestment during the current financial year;
(b) if so, the details thereof;
(c) whether the Government has fixed any target for disinvestment during the said period;
(d) if so, the details thereof; and
(e) the steps taken by the Government to expedite valuation process for the identified sick PSUs?
THE MINISTER OF STATE IN THE MINISTRY OF HEAVY INDUSTRIES & PUBLIC ENTERPRISES
(SHRI P. RADHAKRISHAN)
(a)&(b): The Government is presently engaged in disinvestment of one sick PSU namely Tyre Corporation of India Limited during the current financial year. The Tyre Corporation of India Limited (TCIL) (Disinvestment of Ownership) Bill 2007 was passed by the Parliament in 2007. Consequently, the CCEA on 16th Nov 2008 approved disinvestment in TCIL through outright sale. Accordingly, Department of Disinvestment initiated the disinvestment process with the appointment of an Inter Ministerial Group (IMG) and Advisors. Site visits and due diligence by the bidders were completed in December 2012. However the process has been held up on the issue of surrender of leasehold land to the Government of West Bengal. Also the Hon’ble High Court of Calcutta has passed a liquidation order against TCIL for failure to settle the dues of unsecured creditors. The stay petition filed by the concerned Administrative Department in the Hon’ble High Court of Calcutta has been rejected. Since the matter is sub-judice and the company is in liquidation, disinvestment is on hold till the final order of the High Court.
(c )&(d): The disinvestment target in the interim Budget 2014-15 has been kept at Rs.51,925 crore, comprising of Rs. 36,925 crore by way of disinvestment of Central Public Sector Enterprises (CPSEs) and Rs.15,000 crore through disinvestment of Government stake in non- Government companies.
(e): Asset Valuation Firm was appointed in May,2012 and they have undertaken site visits. Further progress has been held up due to the status of lease hold land held by TCIL and the matter being sub-judice.