Parliamentary Committee Advises On Restructuring Of Loss Making CPSEs

Central Public Sector Enterprises( CPSEs) like Heavy Engineering Corporation( HEC), Hindustan Machine Tools( HMT) and around 3 others among the 16 CPSEs under the Heavy Industries Ministry, Government of India are suffering from huge financial losses. Other CPSEs like Engineering Projects India Limited(EPIL) , NEPA Ltd., etc. are also under the same threat of closing down. The Heavy Industries Ministry has been asked by a high-level Parliamentary Standing Committee of the Rajya Sabha headed by MP Tiruchi Siva of the DMK to look into the reasons for such losses and to enhance the capacity and financial returns from such CPSEs as in the recent past many such CPSEs have closed their functions due to heavy losses.

This could also be attributed to the low budgetary allocation for these CPSEs  which is only 0.01 crore for the year 2023-2024. Therefore it now might need the support of more funds at the revised estimate stage to make up for these losses. A complete restructuring of their functions have also been advised by the Standing Committee along with a detailed survey for the causes of their poor state of affairs that have been asked for by the Parliamentary Standing Committee in order to get back the lost sheen and glory of these Private Sector Undertakings.