Over Rs 61,600 crore in net worth of public sector firms eroded

Hindustan Photo Films Manufacturing, under Patel’s ministry, reported the maximum amount of net worth erosion at Rs 6,828.4 crore, while Eastern Coalfields under the Ministry of Coal followed at Rs 6,015.54 crore, said the minister in a written reply in the Lok Sabha. Indian Drugs and Pharmaceuticals under Ministry of Chemicals and Fertilizers was the third biggest loser among firms who had net liabilities at Rs 5,884 crore.

The minister also said that only five central public sector enterprises (CPSEs) have been closed during 2007-08 to 2009-10. Indian Oil Technologies Ltd was closed in 2009-10, and Brushware Ltd had to shut down operations in 2008-09.

Three CPSEs were closed in the previous fiscal. Generally, the CPSEs are closed by the order of the Board for Industrial and Financial Reconstruction. Cases of CPSEs are referred to BIFR when their accumulated losses are equal to or more than their net worth.

Based on the recommendations of a committee constituted to suggest ways of reviving state-run firms, the government has approved revival packages worth over Rs.24,300 crore for 42 CPSEs during the period.

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