Losses of CPSEs rise to Rs 1.40 lakh crore in FY19, says CAG report

BSNL reported highest net loss of Rs 14,904 crore in FY19

As many as 157 government companies and corporations have reduced their losses to Rs 37,310 crore during 2018-19 compared to Rs 41,180 crore in the previous year. With this, the accumulated losses of 189 government companies have gone up to Rs 1,40,307.55 crore, according to a CAG report tabled in Parliament.

The net worth of 77 out of 189 central public sector enterprises (CPSEs) had been completely eroded by accumulated loss and their net worth was either zero or negative.

Among the loss-making companies, Bharat Sanchar Nigam Limited (BSNL) reported the highest net loss of Rs 14,904 crore. Mahanagar Telephone Nigam Limited (MTNL) was next with a net loss of Rs 3,390 crore. Other companies that reported more than Rs 1,000 crore net loss were United India Insurance Company Limited (Rs 1,878 crore), National Insurance Company Limited (Rs 1,696 crore), ONGC Petro Additions Limited (Rs 1,420 crore) and Damodar Valley Corporation (Rs 1,115 crore).

Out of 434 government companies and corporations, 100 CPSEs declared Rs 71,857 crore dividend in 2018-19. The dividend declared as a percentage of net profit of these 100 profit-earning CPSEs decreased from 46.15 per cent in 2017-18 to 43.97 per cent in 2018-19. In absolute terms, the dividend declared by the CPSEs in 2018-19 increased by Rs 1,295 crore compared to the previous year. Of these 100 CPSEs, 37 are listed and 61 are unlisted companies, while other two are statutory corporations.

"Out of total dividend of Rs 71, 857 crore, the dividend received/ receivable by the central government was Rs 36,715 crore (51.09 per cent of total dividend declared) in 67 CPSEs having equity investment of Rs 81,934 crore," the Comptroller and Auditor General of India said in its report.

The return in the form of dividend on aggregate investment of Rs 4,00,909 crore made by the Central Government in equity capital of 434 CPSEs was 9.16 per cent as compared to 11.71 per cent during 2017-18. Similarly, 43 CPSEs received Rs 16,752 crore as dividend on paid-up capital of Rs 12,312 crore on the equity holdings in other CPSEs in 2018-19.

Of these, 13 CPSEs under the Ministry of Petroleum and Natural Gas, declared a dividend amounting to Rs 29,272 crore which was 40.74 per cent of the total dividend of Rs 71,857 crore declared by 100 CPSEs in 2018-19.

During 2018-19, 247 CPSEs earned profit as compared to 225 in the previous year. These companies earned a profit of Rs 1,77,932 crore compared to Rs 1,65,610 crore in 2017-18. Of these, 11 companies earned a profit of more than Rs 5,000 crore, which includes ONGC (Rs 26,716 crore), IOCL (Rs 16,894 crore), NTPC Limited (Rs 11,750 crore), Coal India Limited (Rs 10,470 crore) and Power Grid Corporation of India Limited (Rs 9,922 crore) among others.