12 PSUs incur accumulated losses worth Rs 4901 crore

The financial health of the 27 boards and corporation of the Himachal Government continues to remain grim as the cumulative losses of 12 of these loss making enterprises have mounted to Rs 4901.51 crore.

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As per the latest report of the Comptroller and Auditor General of India (GAG) for 2022-23 laid during the monsoon session of the Vidhan Sabha, 12 of the 27 boards and corporation are in the red. Only 12 boards and corporations are doing well and have made a profit of Rs 20.21 crore. The total losses of the remaining 14 enterprises rose from Rs 518.60 crore in 2021-22 to Rs 604.94 crore in 2022-23.

Losses Incurred

• HP State Electricity Board: Rs 1809.61
• Himachal Road Transportation Corporation: Rs 1,707.12
• HP Transmission Corporation: Rs 552.07
• HP Power Corporation Ltd: Rs 395.91
• HP Financial Corporation Ltd: Rs 180.97
• HP Forest Corporation Ltd: Rs 113.04
• HP Horticulture Produce Marketing Corporation: Rs 83.87
• HP Tourism Development Corporation: Rs 27.27
• HP Agro Industries Corporation Ltd: Rs 13.48
• HP Handicraft, Handloom Corporation: Rs 12.42
• HP Minorities Development Corporation: Rs 05.72
• HP Anandpur, Naina Devi Ropeway Ltd: Rs 00.03

The highest cumulative losses of Rs 1809.61 crore have been incurred by the Himachal Pradesh State Electricity Board (HPSEB), followed by Rs 1707.12 crore by Himachal Road Transport Corporation (HRTC).

Despite the best efforts by the state government, these two corporation continue to suffer losses and have to be given special grants annually. The fact that both continue to render social responsibility of providing subsidised power supply and transportation facilities in a welfare state is the main reason for their mounting losses. With the objective of improving the financial health of the HPSEB, the state government has withdrawn subsidised power facility to income tax payers who can afford to foot their bill.

Similarly, the government is toying with the idea withdrawing free travel facility to some sections who they feel can do without it. The HRTC is providing subsidised travel facility to various categories like police personnel, handicapped, students and others.

The other major loss-making corporations includes HP Transmission Corporation (Rs 552.07 crore), HP Power Corporation Ltd (Rs 395.91 crore), HP Financial Corporation Ltd (Rs 180.97 crore) and HP Forest Corporation Ltd (Rs 113.04 crore).

Even as successive state governments have toyed with the idea of merging the loss-making public sector undertakings (PSUs) not much headway has been made. Apart from footing Rs 2,000 crores monthly bill of salaries and pensions of government employees, a sum of Rs 4,000 crore has to be spent on the saalreis of employees of boards and corporations.

Also the total loans that these 12 enterprises owe to the state government stands at Rs 7,720.30 crore. The state government from time to time is compelled to provide grants to these boards and corporations to be able to meet their committed liabilities like payment of salaries, pensions and day today functioning of the PSUs.