Himachal Pradesh’s 14 public sector enterprises are running in red: CAG
Himachal Pradesh’s 14 public sector enterprises are running in red as their accumulated book value mounted to 4378.55 Crore and the net worth of nine completely eroded the accumulative losses as their net worth was either zero or negative.
This was stated in the Comptroller and Audit General report presented in the state assembly during the budget session by Chief Minister Sukhvinder Singh Sukhu who also holds the portfolio of finance.
The CAG report on the State Public Sector Enterprises (SPSEs) mentioned that there were 14 SPSEs with accumulated losses of Rs 4,378.24 Cr. Of these, 12 SPSES incurred losses amounting to ₹ 498.55 crores as per the latest finalized accounts as of 30 September 2022.
The report also highlighted that the net worth of nine out of 13 SPSES had been completely eroded by accumulated losses and their net worth was either zero or negative.
Out of the total loss of 498.55 crores incurred during 2021-22 by 12 SPSES, HRTC reported a loss of 40.23 Cr. Besides this, loss of 185.32 Cr, 132.06 Cr, and 128.24 Cr is also attributed to HP State Electricity Board, HP Power Transmission Corporation Ltd, and HP Power Corporation Ltd respectively as per their latest finalized accounts as of 30 September 2022.
A report on public enterprises revealed that there were 29 SPSEs under the audit jurisdiction of the CAG. These include 25 SPSES (Other than Power Sector) and four Power Sector SPSES.
Out of 25 SPSES (Other than Power Sector), there are 19 Government Companies, two Statutory Corporations, and four Government Controlled Other Companies.
Out of 26 working SPSES, 10 working SPSEs earned a profit of 21.47 Cr. as per their latest finalized accounts in 2022 as compared to 11 SPSES which earned a profit of 28.18 Cr. in 2020-21.
Five SPSES had either not prepared their first accounts or profit and loss account or their excess of expenditure over income was reimbursed by the State Government.
Only two SPSEs declared or paid dividends of 0.71 Cr. (Himachal Pradesh State Civil Supplies Corporation Limited: 0.35 Cr and Himachal Pradesh General Industries Corporation Ltd 0.36 Cr).
Four profit-making SPSEs did not pay or provide dividends of 2.42 Cr to the State Government as per their latest finalized accounts.
The remaining four profit-making SPSES were not eligible to pay dividends as per State Government policy.
The Return on Equity ( RoE ) of the profit-earning 10 working SPSEs stood at 16.45 percent as per the latest finalized account. As the net income of all 26 working SPSEs during the period 2019-22 was negative, the RoE could not be calculated.
