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| As losses pile up, 26 PSUs prove white elephants for J&K | | | Peerzada Ummer
Early Times Report
SRINAGAR, June 1: Despite the fact that the several Public Sector Undertakings (PSUs) were incurring losses to the tune of hundreds of crores every year to the state exchequer, the recent budget presented by the Finance Minister mentioned no measures to check draining off of public money through these PSUs.
Early Times on November 28, last year published a detailed report about how the non- performing PSUs are acting as the dreadful parasites to the state exchequer with successive governments taking no measures to curtail such looses .
Out of the 23 working PSUs in the State, 12 have incurred loss of Rs 150.70 crore, with officials of two PSUs not even bothering to prepare profit and loss accounts since the financial year of 1996-97.
The heaviest loss was incurred by State Road Transport Corporation to the tune of Rs 66.97 crore. J&K Industries Limited incurred a loss of Rs 46.83 crores while J&K Horticulture Produce Marketing and Processing Corporation Limited incurred loss of Rs 10.62 crore. Similarly, J&K Minerals Limited incurred loss of Rs 10.36 crore.
These PSUs besides several others failed to forward even one account during the past, causing accumulation of the arrears ranging between four and nineteen years.
Documents in possession of the Early Times reveal that there were also the arrears in finalization of accounts by non- working PSUs. Out of the three non- working PSUs, two of them namely Himalayan Wool Chambers and J&K Handloom Handicrafts Raw Material Supplies Organisation Limited had gone into liquidation process. The remaining one working PSU namely Tawi Scoters Limited had arrears of accounts for 24 years.
Document also reveal that the State Government had invested Rs 790.63 cr which include Rs 64.57 cr. equity, loans as Rs 354.03 cr, grants as Rs 359.44 cr and subsidy as Rs 12.59 cr during the years 2011-12, 2012-13, 2013-14.
With such startling facts in place, the government during the budget of the present financial year was expected to ensure a major reboot in the system but it preferred a mere lip service- virtually requesting the non-performing PSUs to function and compete for business.
Sources within the finance ministry told Early Times that the government has a detailed list of as many as 26 PSUs who haven't performed and have incurred plethora of losses. "The government has for several times asked the PSUs to come up with the better report cards but despite repeated directions, no one is really coming up even with a meager hope of performing well," the official told Early Times, adding that during a high level meeting held prior to budget to review the functioning of the PSUs, it was resolved that units with dismal performances should be closed.
Furthermore, sources said that what stopped the government from axing the PSUs was the criticism from some quarters that government was fearful to receive. "The government was apprehensive of the repercussions of closing down the PSUs- otherwise that was the only remedy to save the state from the economic brunt that it is bearing at present," sources said. |
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