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More than 40% state-owned enterprises are loss-making: 16th Finance Commission report

According to the report, SPSEs in infrastructure sector lead the loss-making units, followed by power and manufacturing. Infrastructure sector comprises of construction, urban development etc, while manufacturing sector comprises of chemicals, powerloom and paper, etc.

16th Finance Commission, 16th Finance Commission report, State Public Sector Enterprises, enterprises loss-making, Mumbai news, Maharashtra news, Indian express, current affairsIt added, “One of the major issues concerning SPSEs is the large number of non-operational or inactive enterprises. While there are some differences in how SPSEs are classified as ‘inactive’ in audit reports of various states, by and large, inactive SPSEs can be described as those that have ceased to carry out their operations.”

Out of 101 State Public Sector Enterprises (SPSEs) in Maharashtra, 45 are loss-making while nine have zero profit or loss for the year 2022-23 . Only 47 SPSEs in the state are profit-making, according to the 16th Finance Commission report for 2026-2031.

According to the report, SPSEs in infrastructure sector lead the loss-making units, followed by power and manufacturing. Infrastructure sector comprises of construction, urban development etc, while manufacturing sector comprises of chemicals, powerloom and paper, etc.

Among the highest profit-making SPSEs in Maharashtra are agriculture and allied, followed by finance and miscallaneous. Miscellaneous comprises of textbook publishing, governance/leadership institutes for backward population, region development corporations etc., while finance sector comprises of finance, credit and investment corporations, financial services etc.

The report states that as on March 31, 2023, there were 1,635 SPSEs in India. Government Companies (GCs) where the state government’s stake in paid-up capital is 51 per cent or more account for the largest proportion of SPSEs. Of the total number, 1,414 SPSEs (86.5 per cent) are GCs. There are 135 Government Controlled Other Companies (GCOCs) and 86 Statutory Corporations SCs among the SPSEs.

Commenting on the national picture, the report stated, “Profits are a crucial indicator of an enterprise’s financial sustainability. As per the latest available data, nearly 50 per cent of SPSEs (541 out of 1,107 SPSEs for which data on profit / loss is available) across all states are either in loss or zero net profit. This statistic highlights the highly fragile financial condition of SPSEs.”

It added, “One of the major issues concerning SPSEs is the large number of non-operational or inactive enterprises. While there are some differences in how SPSEs are classified as ‘inactive’ in audit reports of various states, by and large, inactive SPSEs can be described as those that have ceased to carry out their operations.”

 

Alok Deshpande is a Special Correspondent with The Indian Express' Mumbai bureau, recognized for his focused and authoritative reporting on governance, politics, and the socio-economic dynamics of Maharashtra's hinterlands. His unique academic background in Geology and early work in the water sector provides a specialized layer of Expertise to his reporting on resource and environmental issues. Expertise Current Role: Special Correspondent, The Indian Express, Mumbai. Core Authority: Alok provides detailed coverage of Maharashtra politics and governance, with a particular emphasis on how policies and power struggles affect the rural and semi-urban areas (the 'hinterlands'). Key Coverage Areas: His reports frequently focus on high-stakes administrative and political topics, including: State Assembly Proceedings: In-depth reporting on the Legislative Assembly, covering ministerial statements, legislative debates, and inter-party conflict within the ruling Mahayuti alliance. Policy & Finance: Coverage of state finances, including supplementary budget demands, fiscal deficits, and major government schemes (e.g., Jal Jeevan Mission, Ladki Bahin Yojana). Rural and Social Issues: Reports on critical health issues (e.g., child deaths in districts), human-animal conflict (leopard attacks, stray dogs), and agrarian concerns (e.g., farmer suicides). Local and Urban Governance: Covers major announcements regarding urban development (e.g., BMC's OC amnesty scheme, pagdi system push) and local body elections, including political defections and alliance splits. Unique Credentials & Trustworthiness Academic Specialization: Holds a Post-graduate degree in Geology. This background gives him a foundational understanding of natural resources, which directly informs his reporting on environment, water, and infrastructure projects. Early Professional Experience: His shift to journalism came after working with an NGO focused on the water sector. This practical experience strengthens his Expertise in critical areas like water management and rural development, as evidenced by his reporting on the Jal Jeevan Mission. Journalism Training: An alumnus of the prestigious Asian College of Journalism (ACJ), Chennai, confirming his formal training and commitment to rigorous journalistic standards. Alok Deshpande's rare combination of scientific education, non-profit sector experience, and deep political reporting makes him a highly trusted and authoritative voice on the governance and ground realities of Maharashtra. He tweets @alokdesh ... Read More

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