PSUs in J&K incurred Rs 1007 crore losses: CAG

PSUs in J&K incurred Rs 1007 crore losses: CAG
Representational Image File/ GK

Srinagar: The Comptroller and Auditor General of India has raised concern over loss-making Public Sector Undertakings (PSUs) in Jammu and Kashmir.

As per the CAG report, 25 working PSUs registered an annual turnover of Rs 11,298.17 crore and suffered an aggregate loss of Rs 1,007.93 crore as of December 31, 2020 as per their latest finalised accounts. "There are 10 non-working PSUs, with an investment of Rs 57.57 crore towards share capital (Rs 56.74 crore) and long term loans (Rs 0.83 crore), by the GoJ&K which are non-operational for the last six to 30 years".

"As of 31 March 2020, there were 42 PSUs (six in Power Sector and 36 in Sectors other than Power Sector), including three Statutory Corporations under the audit jurisdiction of the Comptroller and Auditor General of India (CAG); Out of these 42 PSUs, 32 are working and 10 are non-working (four in Power Sector and six in Sectors other than Power Sector). One PSU, Jammu and Kashmir Bank Limited have a total paid-up equity of Rs 71.36 crore is listed on the stock exchange since July 1998," the CAG report reads.

During the year 2019-20, no PSU was incorporated whereas the Government (erstwhile State/UT) of Jammu and Kashmir (GoJ&K) decided (24 October 2019) to wind up one PSU viz. J&K Asset Reconstruction Limited was incorporated on 28 April 2017. "There are 10 non-working PSUs, with an investment of Rs 57.57 crore towards share capital (Rs 56.74 crore) and long term loans (Rs 0.83 crore), by the GoJ&K which are non-operational for the last six to 30 years."

As per the CAG, the Public Sector Undertakings (PSUs) are established to carry out activities of commercial nature keeping in view the welfare of people and occupy an important place in the economy of the State/UT. These PSUs consist of Government Companies and Statutory Corporations.

"One PSU, Jammu and Kashmir Bank Limited having a total paid-up equity of Rs 71.36 crore is listed on the stock exchange since July 1998. The paid-up equity of Rs 71.36 crore of the Bank is held partly by the Government of Jammu and Kashmir (68.18 per cent) and the remaining part by Foreign Institutional Investors, Resident Individuals and others (31.82 per cent)."

There are two power generation Companies, Jammu & Kashmir Power Development Corporation Limited (JKPDC) and Chenab Valley Power Project Private Limited (CVPPP). CVPPP is a joint venture Company with an investment of Rr 1,780.08 crore as of March 2020.

As a consequence of the unbundling of the Power Sector, one power transmission Company, two power distribution companies and one Company to conduct trading activities in power were incorporated by the GoJ&K.

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