Number of loss-making PSUs drops: CAG

The number of loss-making public sector companies (PSUs) has been coming down gradually and the improved performance by other state-owned companies has enabled the government to bring down the waivers for them, says a  Comptroller and Auditor General of India (CAG) report.

"The number of loss making companies fell to 101 in 2002-03 from 121 in 2002-03. The total loss incurred by these companies also reduced to Rs 96.88 billion in 2004-05 from 119.79 billion in 2002-03," the report said.

The CAG had analysed 278 of the 388 government companies and deemed government companies for the study.The accumulated losses of PSUs, however, increased to Rs 853.57 billion in 2004-05 from Rs 817.86 billion in 2003-04.

According to CAG, the equity capital of 88 PSUs under 20 ministries and departments has been completely eroded. Their accumulated losses were Rs 820.01 billion against an investment of Rs 144.69 bn on March 1, 2005.

In 2004-05, the government waived just Rs 2.34 billion of loans, interest and penal interest as compared to Rs 37.18 billion in 2003-04. In the last fiscal, government investment in PSUs increased to Rs 4013.23 billion from Rs 3802.76 billion by the end of 2003-04.

The number of profit earning companies has increased to 164 in 2004-05 from 135 in 2002-03. The total profit earned by these companies was Rs 762.32 billion.

Of the total profit earned by 164 companies, 83.45% was contributed by only 44 PSUs. Of these, 14 were in oil sector, 12 in power, eight in steel, seven in coal and three in telecom.