Executive Summary:
This document is the response to Lok Sabha Unstarred Question No. 3911 concerning the disinvestment of loss-making Central Public Sector Enterprises (CPSEs). It provides data on the number and losses of these CPSEs over the past four financial years and outlines measures taken by the government, including the New Public Sector Enterprise (PSE) Policy. The response was provided on August 18, 2025, by the Minister of State for Finance, Shri Pankaj Chaudhary.
Key Points / Main Content:
Financial Status of CPSEs:
* The number of loss-incurring CPSEs was 57 in FY 2022-23 and 58 in FY 2023-24.
* Losses incurred by these CPSEs were:
* FY 2020-21: ₹31,058 crore
* FY 2021-22: ₹14,586 crore
* FY 2022-23: ₹28,827 crore
* FY 2023-24: ₹21,011 crore
Government Measures:
* CPSEs are managed by their respective Boards and Administrative Ministries/Departments, which implement enterprise-specific turnaround measures such as business restructuring, joint ventures, modernization, and improved marketing strategies.
* The New Public Sector Enterprise (PSE) Policy, notified in February 2021, guides the management of CPSEs.
Disinvestment Policy:
* The government disinvests in PSEs through:
* Minority Stake Sale (via IPO, OFS, Buyback of shares, etc.)
* Strategic Disinvestment (sale of substantial government shareholding with transfer of management control)
* Profitability/loss is not a primary criterion for strategic disinvestment/privatization.
Support for Laid-off Workers:
* The Department of Public Enterprises (DPE) implements the "Scheme for Research, Development and Consultancy Reorientation" (RDCR).
* The RDCR scheme aims to provide skill enhancement and reorientation training to facilitate self-employment or wage employment for Voluntary Retirement Scheme (VRS)/Voluntary Separation Scheme (VSS) optees of CPSEs or their eligible dependents.
Impact Analysis:
CPSEs and their Management:
* Impact: CPSEs are subject to restructuring, potential joint ventures, modernization, and strategic disinvestment based on the New PSE Policy.
* Action Required: CPSE Boards and Administrative Ministries/Departments need to implement turnaround measures and adhere to the New PSE Policy guidelines.
Laid-off Workers:
* Impact: Workers who opt for VRS/VSS may have access to skill enhancement and reorientation training.
* Action Required: Eligible workers and their dependents should avail themselves of the RDCR scheme for skill enhancement and employment opportunities.
Government (DPE):
* Impact: DPE is responsible for implementing the RDCR scheme.
* Action Required: DPE needs to ensure effective implementation of the RDCR scheme to support VRS/VSS optees.
Key Entities Referenced
Ministry of Finance: A department of the Government of India responsible for financial matters.
Department of Public Enterprises: A department under the Ministry of Finance, Government of India, responsible for the management of Central Public Sector Enterprises (CPSEs).
Lok Sabha: The lower house of the Parliament of India, where the unstarred question was raised.
Central Public Sector Enterprises (CPSEs): Companies in which the direct holding of the Central Government or other CPSEs is 51% or more.
New Public Sector Enterprise (PSE) Policy: A government policy notified in February 2021, guiding the management and disinvestment of Public Sector Enterprises.
Initial Public Offer (IPO): A method used by Government to carry out disinvestment in Public Sector Enterprises
Strategic Disinvestment: Entire or substantial sale of Government shareholding to a strategic buyer along with transfer of management control
Scheme for Research, Development and Consultancy Reorientation (RDCR): A scheme implemented by the Department of Public Enterprises to provide skill enhancement and reorientation training to facilitate self-employment or wage employment for Voluntary Retirement Scheme (VRS)/Voluntary Separation Scheme (VSS) optees of CPSEs or their eligible dependents.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF PUBLIC ENTERPRISES
LOK SABHA
UNSTARRED QUESTION NO. 3911
TO BE ANSWERED ON 18.08.2025
Disinvestment of Loss Making CPSEs
3911. Shri Eswarasamy K:
Will the Minister of FINANCE be pleased to state:
(a) whether the number of loss making Central Public Sector Enterprises (CPSEs) has been
increased in the current financial year compared to the previous financial years;
(b) whether the loss made by these CPSEs is the highest during the last four years and if so,
the details thereof;
(c) the details of measures taken by the Government to improve the financial health of these
CPSEs;
(d) whether the Government is contemplating disinvestment of these loss making CPSEs;
(e) if so, the details thereof and if not, the reasons therefor; and
(f) the details of steps contemplated to provide alternate source of livelihood to laid off
workers of these CPSEs?
ANSWER
THE MINISTER OF STATE FOR FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) & (b) As per the Public Enterprises (PE) Survey, the number of loss incurring CPSEs for
the Financial Years 2022-23 and 2023-24 are 57 and 58 respectively. The details of loss
incurred by loss incurring CPSEs during 2020-21, 2021-22, 2022-23 and 2023-24 is at
Annexure.
(c) CPSEs function under the administrative control of respective Ministries / Departments.
Enterprises specific measure for their turnaround are taken by the respective Boards and
Administrative Ministries/Departments having jurisdiction over the concerned CPSEs. These,
inter alia, include business restructuring, formation of joint ventures, modernization and
improved marketing Strategies etc. Government has also notified the New Public Sector
Enterprise (“PSE”) Policy in February, 2021. The CPSEs are, therefore, to be dealt according
to the provisions of the New PSE Policy.(d) & (e) Government carries out disinvestment in Public Sector Enterprises (PSEs) through (i)
Minority Stake Sale through various SEBI-approved methods such as Initial Public Offer
(IPO), Offer for Sale (OFS), Buyback of shares etc. and (ii) Strategic Disinvestment i.e. entire
or substantial sale of Government shareholding to a strategic buyer along with transfer of
management control. The policy on strategic disinvestment/privatization is based on the
economic principle that Government should minimize presence in sectors, where competitive
private sector has come of age and economic potential of such entities may be better discovered
in the hands of strategic investor due to various factors such as infusion of capital, technological
upgradation, efficient management practices etc. Profitability/loss is not among the relevant
criteria for privatization/strategic disinvestment.
(f) Department of Public Enterprises (DPE) is implementing Scheme for Research,
Development and Consultancy & Reorientation" (RDCR) and one of the objectives of RDCR
scheme is to provide skill enhancement and reorientation training to facilitate self-employment
or wage employment for Voluntary Retirement Scheme (VRS)/ Voluntary Separation Scheme
(VSS) optees of CPSEs or their eligible dependents.
***Annexure
Annexure referred to in reply to Parts (a) & (b) of Lok Sabha Unstarred Question
Number 3911 for answer on 18-08-2025
Number of loss incurring CPSEs and amount of loss
Year No. of loss incurring CPSEs Loss of loss incurring CPSEs
(Rs. in Cr.)
2020-21 77 31,058
2021-22 59 14,586
2022-23 57 28,827
2023-24 58 21,011