The losses amounted by Central Public Sector Enterprises (CPSEs) rose 34 per cent in 2010-11 to Rs 21,693 crore. This was said in a statement in Rajya Sabha by Union Minister for Heavy Industries & Public Enterprises, Mr Praful Patel.
There were 62 loss-making CPSEs in the fiscal, two more than in 2009-10. “The reasons for increase or decrease in losses are enterprise specific, which inter-alia includes lack of working capital, surplus manpower, old plants and machinery, obsolete technology, heavy interest burden, weak marketing strategy,” it said.
As on March 31, 2011, there were 49 CPSEs with negative net worth amounting to Rs 68,404 crore at the consolidated level. Based on recommendations of the Board for Reconstruction of Public Sector Enterprises, the Government has been taking measures to revive sick & loss making CPSEs through financial restructuring, business restructuring, modernisation and manpower rationalisation.