Himachal: Losses in 13 of 23 PSUs mount to Rs 4,902 crore

Shimla, March 17

A total of 13 of the 23 public sectors undertaking (PSUs) of the Himachal government are in the red with losses mounting to Rs 4902.77 crores.

The disclosure was made in the report of the 23 boards and corporation in the Budget presented by Chief Minister Sukhvinder Sukhu in the Vidhan Sabha today. The total number of employees in these 23 PSUs is 28,375.

The biggest loss-making PSUs are HP Electricity Board and Transport Corporation (HPSEB) with a loss of Rs 1809.60 crore followed by Himachal Road Transport Corporation (Rs 1707.11 crore loss). However, being a welfare state, the government is offering subsidised travel and power to the people, putting additional burden on these two PSUs which have been extended grant-in-aid in the Budget.

Faced with severe financial crisis, the Himachal Government is keen to go in for merger of some of these loss-making boards and corporations. In the last Cabinet meeting, nod was given for merger of the Agro Industries Corporation with the HPMC which had suffered a loss of Rs 13.47 crore.

The few PSUs registering profit include HP State Civil Supplies Corporation which registered a profit of Rs 27.70 crore, HP General Industries Corporation with a profit of Rs 43.54 crore, HP State Industrial Development Corporation with a profit of Rs 93.92 crore, HP Ex-servicemen Corporation with a profit of Rs 73.80 crore and HP State Electronics Development Corporation registering a profit of Rs 10.88 crore.

There are indications that shortly the State Finance Corporation could also be merged with another PSU, the HP Small Industries Development Corporation (HPSIDC). Some of these PSUs opened in the past have become more of white elephants, incurring huge losses despite efforts to revive them.