CAG suggests closing non-working PSUs.
As a potent indicator towards inefficient management, Uttar Pradesh public sector units (PSUs) have accumulated losses worth almost Rs 18,000 crore.
There are 126 PSUs in the state, of which 83 are functioning and 43 are non-working PSUs.
In its 2009-10 commercial report, tabled in the state assembly on Friday, Comptroller and Auditor General (CAG) of India said, “Since non-working PSUs served no purpose, the government needed to expedite their closure.”
The losses pertain to working PSUs, including 76 companies and seven statutory corporations. During 2009-10, these PSUs posted loss of Rs 3,920 crore, taking total loss to Rs 17,890 crore.”
According to CAG, working PSUs had registered a turnover of Rs 35,542 crore for 2009-10. This turnover was equal to 9.94 per cent of the Gross State Domestic Product (GSDP) indicating a ‘moderate role’ played by them in the state economy.
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The investment (capital and long term loans) in all 126 working and non-working PSUs was about Rs 63,000 crore as on March 31, 2010. It grew by 137 per cent from Rs 26,576 crore in 2004-05, mainly due to increase in investment in power sector.
Power sector accounted for 90 per cent of total investment, with the government contributing Rs 8,112 crore towards equity and grants/subsidies during 2009-10.
Of the 83 working PSUs, 33 earned profit of Rs 1,082 crore, while 21 PSUs incurred loss of Rs 5,000 crore. Besides, 27 companies remained at no-profit and no-loss.
Major contributors to profit were UP Avas Evam Vikas Parishad (Rs 424 crore), UP Rajkiya Nirman Nigam (Rs 196 crore), UP State Industrial Development Corporation (Rs 97 crore), UP Forest Corporation (Rs 102 crore), UP Jal Nigam (Rs 67 crore), UP State Warehousing Corporation (Rs 40 crore) and UP State Road Transport Corporation (Rs 11 crore).
Heavy losses to the tune of Rs 4,739 crore were incurred by seven power sector companies, besides UP Financial Corporation (Rs 115 crore) and UP State Sugar Corporation Limited (Rs 44 crore).