3 min readChandigarhApr 16, 2014 12:16 PM IST
First published on: Apr 17, 2013 at 04:38 AM IST
Chief Minister Parkash Singh Badal has ordered authorities to expedite the process of closing down the non-working public sector undertakings in the state. The move comes in the backdrop of a scathing observation by the CAG that the state government has taken anything between 3 to 29 years to wind up these dysfunctional PSUs and that it needed to accelerate the process to reduce its losses.
There are 53 PSUs in Punjab,of which,31 are functional. These,however,have incurred an overall loss of Rs 1,510 crore in one year and have so far accumulated losses of Rs 12,180 crore. The other 22 non-working PSUs need to be shut down at the earliest,the CAG has recommended.
The chief minister has now asked his officers to hold meetings with administrative secretaries and MDs of the non-working PSUs,to work out a plan on how the closures can effected at the earliest. Badal has also asked for reports on the working of the loss making PSUs along with suggestions on whether the units can be revived. The chief minister has further ordered administrative secretaries of the departments which control the PSUs,to propose the closure of functional PSUs that have been consistently showing losses.
The administrative secretaries have also been made directly responsible for the working of the PSUs under them. In case of losses,the department secretary will have to provide reasons. Among the working PSUs,14 have earned a profit totalling Rs 59 crore while 12 others have incurred losses totalling Rs 1,569 crore. Three prepared their accounts on no-profit no-loss basis and two are yet to begin commercial operations.
Of the 22 non-working PSUs,eight are in the process of shutting down. For the rest,despite closure orders,the process has not begun. “During 2011-2012,12 non- working PSUs incurred an expenditure of Rs 65 crore towards salary and establishment expenditure. The companies which have taken the route of winding up by the court order are under liquidation for a period ranging 3 to 29 years. The process of voluntary winding up is much faster and should be adopted,” CAG had stated.
The principal auditor had carried out a special review of PSUs in the state and tabled its latest report in the Vidhan Sabha last month: “A review of three years Audit Reports (2009-10 to 2011-12) of CAG shows that the state PSUs losses of Rs 4923 crore and infructuous investments of Rs 14.5 crore were controllable with better management. Thus,there is tremendous scope to improve the functioning and minimise/eliminate losses.
The PSUs can discharge their role efficiently only if they are financially self-reliant. There is a need for professionalism and accountability in their functioning.”
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