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Standing Committee Reports 228Th.Pdf PARLIAMENT OF INDIA RAJYA SABHA 228 DEPARTMENT-RELATED PARLIAMENTARY STANDING COMMITTEE ON INDUSTRY TWO HUNDRED AND TWENTY-EIGHTH REPORT ON ACTION TAKEN NOTE ON THE 219TH REPORT OF THE COMMITTEE ON REVIVAL AND RESTRUCTURING OF CEMENT CORPORATION OF INDIA LTD. PERTAINING TO THE MINISTRY OF HEAVY INDUSTRIES AND PUBLIC ENTERPRISES (DEPARTMENT OF HEAVY INDUSTRY) (PRESENTED TO THE RAJYA SABHA ON 27TH MARCH, 2012) (LAID ON THE TABLE OF THE LOK SABHA ON 27TH MARCH, 2012) RAJYA SABHA SECRETARIAT NEW DELHI MARCH, 2012/CHAITRA, 1934 (SAKA) Website:http://rajyasabha.nic.in E-mail:[email protected] PARLIAMENT OF INDIA RAJYA SABHA DEPARTMENT-RELATED PARLIAMENTARY STANDING COMMITTEE ON INDUSTRY TWO HUNDRED AND TWENTY-EIGHTH REPORT ON ACTION TAKEN NOTE ON THE 219TH REPORT OF THE COMMITTEE ON REVIVAL AND RESTRUCTURING OF CEMENT CORPORATION OF INDIA LTD. PERTAINING TO THE MINISTRY OF HEAVY INDUSTRIES AND PUBLIC ENTERPRISES (DEPARTMENT OF HEAVY INDUSTRY) (PRESENTED TO THE RAJYA SABHA ON 27TH MARCH, 2012) (LAID ON THE TABLE OF THE LOK SABHA ON 27TH MARCH, 2012) RAJYA SABHA SECRETARIAT NEW DELHI MARCH, 2012/CHAITRA, 1934 (SAKA) CONTENTS PAGES 1. COMPOSITION OF THE COMMITTEE ........................................................................................ (i)-(ii) 2. INTRODUCTION ........................................................................................................................ (iii) 3. REPORT ................................................................................................................................... 1—8 (i) Chapter – I Recommendations/observations, which have been accepted by the Ministry.................................................................................................................... 2 (ii) Chapter – II Recommendations/observations which the Committee does not desire to pursue in view of the Government’s replies.................................................... 3—4 (iii) Chapter – III Recommendations/observations in respect of which the Committee has either not accepted the replies of the Ministry or has asked the Ministry to review its replies .............................................................................................. 5—7 (iv) Chapter – IV Recommendations/observations in respect of which final replies of the Ministry have not been received ........................................................................ 8 4. MINUTES ................................................................................................................................. 9—12 COMPOSITION OF THE COMMITTEE (Constituted w.e.f. 31st August, 2011) RAJYA SABHA 1. Shri Tiruchi Siva — Chairman 2. Shri G. Sanjeeva Reddy 3. Shri Bhubaneswar Kalita 4. Shri Ashk Ali Tak 5. Shri K.B. Shanappa 6. Shri Natuji Halaji Thakor 7. Prof. S.P. Singh Baghel 8. Shri Srinjoy Bose 9. Shri Nandamuri Harikrishna 10. Dr. Vijay Mallya LOK SABHA 11. Dr. Rattan Singh Ajnala 12. Shri Kamlesh Balmiki 13. Shri Sabbam Hari 14. Shrimati Poonamben Veljibhai Jat 15. Shri Ramsingh Kaswan 16. Shri Kaushalendra Kumar 17. Shrimati Putul Kumari 18. Shri M. Krishnaswamy 19. Shrimati Ingrid Mcleod 20. Shri Bharat Ram Meghwal 21. Shri Somen Mitra 22. Shri Gorakhnath Pandey 23. Shri Kishn V. Patel 24. Shri R.K. Singh Patel 25. Shri B.Y. Raghavendra 26. Shri Ramsingbhai Patalbhai Rathwa 27. Shri Ijyaraj Singh 28. Shri E.G. Sugavanam 29. Shri Bibhu Prasad Tarai 30. Shri Suresh Kashinath Taware 31. Shri Subhash Bapurao Wankhede (i) (ii) SECRETARIAT Shri S.N. Sahu, Joint Secretary Shrimati Sunita Sekaran, Director Shri Vimal Kumar, Joint Director Shri Anil Kumar Saini, Assistant Director INTRODUCTION I, the Chairman of the Department-related Parliamentary Standing Committee on Industry, having been authorized by the Committee, hereby present this Two Hundred and Twenty-Eighth Report on Action Taken Notes furnished by the Ministry of Heavy Industries and Public Enterprises (Department of Heavy Industry) on the recommendations contained in the Committee’s Two Hundred and Nineteenth Report on the Revival and Restructuring of Cement Corporation of India Ltd. pertaining to Department of Heavy Industry. 2. I thank the Ministry of Heavy Industries and Public Enterprises (Department of Heavy Industry) for furnishing the Action Taken Notes on the recommendations contained in the Committee's Two Hundred and Nineteenth Report. 3. The Committee in its meeting held on the 29th February, 2012 considered and adopted the report. TIRUCHI SIVA NEW DELHI; Chairman, February, 2012 Department-related Parliamentary Standing Committee on Industry (iii) 1 REPORT The Action Taken Report of the Committee deals with the Action Taken by the Ministry of Heavy Industries and Public Enterprises (Department of Heavy Industry) on the recommendations contained in the Committee’s Two Hundred and Nineteenth Report on the Revival and Restructuring of Cement Corporation of India Ltd. pertaining to Department of Heavy Industry. 2. Action Taken Notes have been received from the Ministry of Heavy Industries and Public Enterprises (Department of Heavy Industry) in respect of the recommendations contained in the Report. These have been categorized as follows: Chapter–I The recommendations/observations, which have been accepted by the Ministry. The Committee is pleased to observe that the Ministry has accepted its recommendations as mentioned in the Chapter–I of the Report. Chapter–II The recommendation/observations which the Committee does not desire to pursue in view of the Government’s replies. In respect of these recommendations the Committee is convinced with the logic and explanations advanced by the Ministry and therefore do not want to pursue them for the present. Chapter–III The recommendations/observations in respect of which the Committee has either not accepted replies of the Ministry or has asked the Ministry to review its reply. The Committee expresses its concern over the non-implementation of recommendations contained in Chapter–III and desires that the Ministry should furnish logical explanations therefore. Chapter–IV The recommendations/observations in respect of which final replies of the Ministry have not been received. In respect of recommendations placed in Chapter-IV, the Ministry has either furnished the interim replies or couched its language in vague terms like noted for compliance/guidance, therefore, the Committee desires that the Ministry should furnish Action Taken Notes in respects of recommendations categorized in Chapter-IV in detail and to the point, as per the intention and spirit of the recommendations of the Committee. 3. The details of the ATR are being discussed in the succeeding pages. 2 CHAPTER-I Recommendations/Observations, which have been accepted by the Ministry The Eleventh Five Year Plan document also takes note of the point and observes “The production of cement is a continuous process requiring uninterrupted power supply. Since the availability and quality of grid power supply continue to be a problem, the use of captive power has been increasing. Most of the cement units have installed captive power generation capacities to the extent of 60% to 100% of their requirement. The captive power generation capacity of cement industry is estimated to be 1825 MW at present, of which 61 % is based on diesel and the rest 39% on coal. With growing uncertainties of grid power availability, it is estimated that 2000 MW captive power would be required during Eleventh Plan”. Recommendation The Committee strongly recommends both to the Planning Commission and the DHI to pay heed to the above observations of the Eleventh Five Year Plan document and seriously undertake efforts for establishing captive power plants in the plants of the CCI. (Para 29) Action Taken Note In Tandur unit, CCI is getting power supply from APGPCL (14 MW) and APCPDCL (8MW), which is sufficient for the existing plant, in addition, CCI has 4 MVA DG Set to supplement the requirement. As regards the other two operating unit at Bokajan and Rajban, capacity of these units is too small to set up captive power plants of economic size. CCI has already 4 MVA DG Set at Bokajan also to supplement the power requirement. Establishment of captive power plants in the operating units of CCI is, therefore, neither necessary nor feasible at this stage. 2 3 CHAPTER-II Recommendations/Observations which the Committee does not desire to pursue in view of the Government’s replies Recommendation The Committee while taking note of the measures of the Government of India for revival and restructuring of the CCI, would like to know the outcome of the money spent. It recommends that the Department of Heavy Industry (DHI) must closely monitor the way in which money is being spent for achieving the targeted goal and submit a detailed report in this regard to the Committee. (Para 22) Action Taken Note As per recommendations of BIFR, the Govt. of India had provided funds as under:– (i) Non-Plan Loan : Rs. 128.62 crore (Out of sanctioned funds of Rs.153.62 crore only Rs.128.62 crore were availed by the Company (ii) Plan loan and equity : Rs. 30.67 crore Rs. 159.29 crore The above amount has been spent as under:– Sl. No. Description Amount 1. Secured creditors Rs. 22.27 crore 2. Consortium Banks Rs. 52.83 crore 3. Unsecured creditors like public deposits, Indira Gandhi Foundations, etc. Rs. 49.26 crore 4. Dues of employees Rs. 4.25 crore 5. Expansion of Rajban Unit Rs. 6.80 crore Rs.135.41 crore Further, work of up gradation/modernization of Tandur Unit and expansion of Bokajan Unit is
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