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| Out of 19 PSUs, 7 running in loss in J&K | | |
Mustansir
SRINAGAR, Feb 14: Out of 19 Public Sector Undertakings (PSUs) which are under the administrative control of various government departments, seven are running in loss.
Lack of Technology upgradation, poor research and development faculties, overstaffing, under utilization of intake capacity, excessive external interferences and over emphasis on capital intensive technology.
In J&K, PSUs were set up as an important part of development strategy, adopted at the national level and in sectors where private investments was not forthcoming. The idea was that these PSUs would generate further surpluses and yield some minimum rate of return on the investment made in them. However, over the years in the majority of the cases, they have been found to be earning low or even going on losses. There are 19 public sector undertakings in the State under the administrative control of various Departments and these are operate in production/manufacturing, promotional/development, trading/marketing and service utility sectors. PSUs are being provided budgetary support by the State Government to meet their wage bills.
These units have to compete with the private sector but the productivity of labour as well as capital is low. Fresh infusion of technology requires additional funds that are not easily available. Under these circumstances, it has become necessary to carry out reforms of the public sectors at a fast pace. The State Government has already signed an MoU with the Government of India to gradually phase out the budgetary support. Presently, seven PSUs are managed and controlled by the Industries and Commerce Department, J&K, with the total authorized capital of Rs.18.00 crore out of which paid up capital is Rs 71.13 crore.
J&K Minerals is one of the PSUs which is running in losses. Since the corporation had been incurring colossal loss every year right from it had precarious financial health. However, from 2009-10 onwards, the corporation has improved its liquidity position manifolds. The corporation besides remitting monthly salary/wages to its working employees timely, besides setting in motion the process of releasing retirement dues to the retirees. The retirement dues of retirees who had retired from the year 1999 to 2007 have been remitted.
Besides the corporations are pursuing an ambitious plan to further enhance its revenue generations in the coming years to make the corporation self-reliant. To obviate the difficulty, the corporation has taken a number of steps which include closure of non-viable units to avoid recurring loss, implementation of VRS to downsize the establishment, commercial disposal of surplus assets to meet the obligations towards statutory liabilities and productivity enhancement, of the projects to improve liquidity position. This has enabled the corporation to reduce the wage bill of the corporation from Rs 104.00 lakhs to Rs 86.00 lakhs per month, despite implementation of sixth pay recommendations in favour of employees/workers of the corporation.
The closing of unviable units, downsizing of staff under VRS/GHS, enhanced liquidity position coupled with the budgetary support from the state Government has enabled the corporation to earn revenue of Rs 12.12 crores through sale of Coal, Gypsum and Sapphire (incl. Misc. income) during the year 2012-13 and the expenditure for the year was to the tune of Rs 14.79 crore. The above expenditure includes past liabilities amounting to Rs 1.56 crore. The excess expenditure during the year has been met out of advance sale and financial assistance relieved from state government during the year. |
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