Out of the 16 operational central public sector enterprises (CPSEs) under the administrative control of the heavy industries ministry, five CPSEs including Heavy Engineering Corporation (HEC) and Hindustan Machine Tools (HMT) are making losses.
A high-level Parliamentary panel of Rajya Sabha has expressed concern over this fact and also noted that a number of CPSEs under the ministry's administrative control are gradually decreasing.
The panel has asked the heavy industries ministry to work towards enhancing the performance of CPSEs under its control and adopt restructuring measures to revive the loss making units, so that no further closure of PSUs takes place.
The Parliamentary standing committee on industry which is headed by DMK MP Tiruchi Siva, in its report, presented in the Parliament during the recently concluded budget session, said that HEC has been a loss-making enterprise continuously for the past several years, yet a meagre token amount of Rs 0.01 crore has been kept as a budgetary support for it for 2023-24.
The committee thus has recommended that the ministry should make concerted efforts to improve the situation of HEC and if need arises, may seek additional funds at the "revised estimate" stage.
The ministry should also give details of the steps taken and plans conceived to revive and strengthen the CPSEs within its administrative ambit to the panel, it said in the report.
Apart from HEC and HMT, the other loss making PSUs under the ministry's control are Engineering Projects (India) Limited (EPIL), Rajasthan Electronics and Instruments Limited (REIL) and NEPA Ltd.
The committee also expressed dismay that year after year the number of CPSEs under the control of the heavy industries ministry are decreasing.
The committee has recommended that the ministry should do a serious and holistic analysis of the causes that are making its PSEs sick and loss-making, and make concerted efforts for their revival and restoration.