Shut down 22 loss-making PSUs: CAG to Maharashtra govt

These PSUs have cumulative losses of Rs 9,832.49 crore

By: Express News Service | Mumbai | Published: April 8, 2017 3:10 am

While the BJP-led government at the Centre is keen on divesting state-owned units, the Maharashtra government is still in control of 87 PSUs of which 22 are not operational. The Comptroller and Auditor General of India in its report on Public Sector Undertakings has told the state government to ensure the swift winding up of these 22 firms.

There are now 83 state government companies and four statutory corporations which are deemed as State Public Sector Undertakings. The total investment in these 87 companies is pegged at Rs 1.75 lakh crore.

The thrust of PSU investment is mainly in the power sector with eight companies, with an investment of Rs 1.62 lakh crore accounting for 92.4 per cent of total PSU investments, followed by 20 infrastructure companies which have an investment of Rs 4,491 crore.

These 65 functional PSUs have an annual turnover of Rs 91,397 crore. However, only 36 of them are profitable, showing a profit of Rs 3,098.8 crore, with one entity, the Maharashtra State Electricity Transmission Company, contributing nearly 84 per cent of the total profit — Rs 2,600 crore.

The 22 loss-making PSUs have cumulative losses of Rs 9,832.49 crore. The Maharashtra State Power Generation Company has reported the highest loss at Rs 8,742 crore.

The 22 non-working PSUs have a total investment of Rs 938.94 crore. “As of March 2016 there were 22 non-working PSUs having investment of Rs 938.94 crore. Some of these companies are non-functional for the last 38 years. This is a critical area as investments in non-working PSUs do not contribute to the economic growth of the state,” the CAG report states.

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