PSUs in UP bleeding, losses near Rs 18k cr

In its recent report, the Comptroller and Auditor General of India has pointed out that of 126 PSUs in the state, only 33 were either earning profit or were at break even point.

"The working PSUs registered a turnover of Rs 35,541 crore for 2009-10, which was equal to 9.9 per cent of the state GDP. However, the working PSUs incurred overall loss of Rs 3,919.77 crore and had accumulated losses of Rs 17,889.43 crore," it said.

During the year 2009-10, out of 83 working PSUs, 33 PSUs earned profit of RS 1,0081.6 crore and 21 incurred loss of Rs 5,001.37 crore.

Two working PSUs, which were incorporated during 2006-07, had not submitted their fisrt accounts whereas 27 companies remained at no profit no loss.

Heavy losses were incurred by seven companies of the power sector, totalling to Rs 4,738.563 crore, Uttar Pradesh Financial Corporation was bleeding by Rs 115 crore and UP State Sugar Corporation Limited by 43.87 crore.

Among the major profit making companies, Avas Evam Vikas Parishad had an income of Rs 424.13 crore, Rajkiya Nirman Nigam Rs 195.64 crore, State Industrial Development Corporation Rs 97 crore, Forest Corporation 101.59 crore, Jal Nigam Rs 66.54 crore, Warehousing Corporation Rs 39.82 crore and Transport Corporation Rs 10.67 crore.

The CAG attributed the losses to various deficiencies in functioning of the PSUs. "A review of three years audit reports shows that the state PSUs losses of Rs 1,807 crore and infructuous investments of Rs 30.11 crore," the report said.

On 43 non-working companies, the CAG recommended that as no purpose would be served by keeping these PSUs in existence and the government need to expedite their closure.