Net worth of 11 PSU minus Rs 3,148.02 cr; liabilities exceed the value of total assets: CAG
J&K Public Sector Companies in Red…
Srinagar: The net worth of 11 J&K Public Sector Enterprises (PSUs) has been completely eroded by accumulated losses, according to a report by the Comptroller and Auditor General (CAG) of India.
The liabilities of these SOEs far exceeded the value of their total assets. They went red despite budget support worth billions of rupees.
The National Auditor of India further revealed that as of March 31, 2021, the state-turned-union territory had 42 PAUs. The cumulative losses of 18 of its PSUs touched Rs 3,655.92 crore.
The J&K government at the end of the previous financial year made investments in its 42 PSUs in the form of equity and long-term loans worth Rs 18,332.90 crore. It has always provided financial support to these PSUs in various forms through the annual budget in the form of equity, loans, grants, cancellation of their loans and even conversion of their loans into equity.
The CAG revealed that “the net worth of 11 out of 18 PSUs had been completely eroded by accumulated losses and their net worth was negative. The net worth of these 11 PSUs was less at Rs 3,148.02 crore”.
These PSUs had equity investment and capital worth hundreds of crores of rupees.
According to the report, Jammu and Kashmir Road Transport Corporation (JKRTC) topped the list of companies with a negative net worth of minus Rs 1,426.98 crore. He is followed by Jammu and Kashmir Industries Limited with a net worth of minus Rs-737.19 crores.
Jammu and Kashmir Minerals Limited slipped to third position in eroding its net worth to negative minus Rs 217.01 crores. This is followed by the J&K Handicrafts (Sales and Export) Development Corporation at minus Rs 161.54 crores and the State Industrial Development Corporation at minus Rs 129.34 crores.
UAPs were established after 1947 to conduct business activities for the welfare of the people and contribute to the state’s domestic product of the former state.
Mismanagement and corruption are seen as the main reasons why these public services have turned red.
The CAG said there were six dormant PSUs in J&K (including four under liquidation) having an investment of Rs 57.57 crore in capital and long-term loans of Rs 0.83 crore. This is a critical area because investments in idle PSUs do not contribute to the economy. growth of J&K.
The report found that the ratio of PSU turnover to gross state domestic product (GSDP) has steadily declined over the years. The proportion of GSDP proceeds in 2018-2019 was 6.34%, but fell to 6.01 in the previous fiscal year.
Details of the investment made in 42 PSUs in the form of equity and long-term loans till March 31, 2021 revealed that the state government had injected Rs 18,332.90 crore.
However, the Union Territory still has 12 PSUs which reported a profit of Rs 480 in their finalized financial statements in 2020-21. J&K Bank was the main net profit generator with Rs 428.45 crores, followed by J&K Horticulture Produce Marketing and Processing Corporation Limited with profit of Rs 31.47 crores and Power Development Corporation at Rs 20.42 crores.
Rashid Paul is associate editor at Kashmir Images.
He can be reached at [email protected]