Punjab PSUs’ losses up six times in 5 years
Vijay C Roy
Tribune News Service
Chandigarh, August 5
A majority of the public sector companies in Punjab continue to bleed. For the cash-starved state, these firms are proving to be a “white elephant”, with their net losses going up six times in five year, says a report of the Comptroller and Auditor General (CAG). The losses of the working PSUs (public sector undertakings) in the state touched Rs 4,809.75 crore in 2022-23 from Rs 724.59 crore in 2018-19.
The increase in losses was due to substantial increase in losses of Punjab State Power Corporation Limited (Rs 4,775.93 crore), Punjab State Grains Procurement Corporation Limited (Rs 224.05 crore) and Punjab Agro Foodgrains Corporation Limited (Rs 49.90 crore). There are 33 working PSUs in the state.
According to sources in the CAG, the PSPCL registered substantial losses on account of increase in power purchase cost, fuel cost and benefits given to employees.
According to the latest finalised accounts of 33 working state PSUs, the 11 profit-making PSUs registered net profit of Rs 319.97 crore in 2022-23. Among the profit making PSUs are Punjab State Warehousing Corporation (Rs 163.02 crore), Punjab State Transmission Corporation Limited (Rs 100.90 crore) and Punjab Small Industries and Export Corporation Limited (Rs 29.09 crore).
The remaining 18 PSUs incurred losses to the tune of Rs 5,129.73 crore. Four PSUs are functioning on “no profit, no loss” basis. The overall losses incurred by the power sector PSUs increased from Rs 36.87 crore in 2018-19 to Rs 4,674 .92 crore in 2022-23. However, the losses incurred by the non-power sector PSUs decreased from Rs 687.72 crore in 2018-19 to Rs 134.84 crore in 2022-23.
According to the report, the overall negative return on state government investment increased due to heavy losses incurred by these 18 companies.
The state government provides financial support to PSUs in the form of equity, loans, grants and subsidies. The budgetary outgo of the state government in that regard increased to Rs 20,431.84 crore in 2022-23 from Rs 9,364.50 crore in 2018-19.
