45 CPSEs incur continued losses for 3 years

As many as 43 central public sector enterprises (CPSEs) including Air India and BSNL have incurred losses continuously for the last three years (2013-16), Parliament was informed today.

Major reasons for losses include resource crunch, low capacity utilisation, oil plant and machinery, stiff competition, weak marketing and mismanagement. As per the information available in the Public Enterprises Survey 2015-16, ‘43 CPSEs’ have incurred losses continuously for the last three years (201316), Minister of State for Heavy Industries and Public Enterprises Babul Supriyo said in a written reply to the Lok Sabha, reports PTI.

The other firms that have reported losses include British India Corporation, Hindustan Anti biotics, HMT Watches Ltd and Indian Drugs and Pharmaceuticals. Replying to a separate question, the minister said modernisation and capacity expansion of units of HPC (Hindustan Paper Corporation) - Cachar Paper Mill and Nagaon Paper Mill in Assam has not yet taken place.

He also said that there are allegations of rampant corruption in purchasing of bamboos. "A complaint was received through Central Vigilance Commission regarding alleged irregularities in the procurement of bamboos. The case has been forwarded to CBI to inquire the matter comprehensively," he added.