State Government-owned PSUs incur loss of Rs 1,265 crore in FY17

Bengaluru: Karnataka government-owned publlic sector organizations have announced a loss of Rs 1,265.37 crore for the year end March 2017. Out of 90 working Public sector units (PSUs) in the state, 22 have brought about misfortunes, while 52 earned a benefit amid the year, as indicated by a CAG report tabled in the Legislative Assembly on Thursday.

The working PSUs earned a benefit of Rs 1,420.49 crore amid the period. But, the losses amid the year were reduced by 19.4% contrasted and Rs 1,570.21 crore announced in 2015-16, while the profits were level contrasted and Rs 1,425.50 crore revealed in FY16, the CAG report said. Among the PSUs that acquired misfortunes, Karnataka Neeravari Nigam Ltd detailed an immense loss of Rs 477 crore took after by Hubli Electricity Supply Company Limited (Rs 373) crore. Gulbarga Electricity Supply Company Limited announced lost Rs 131 crore losses.

However, amid the year under survey, working PSUs demonstrated total benefit of Rs 155.12 crore contrasted to a net total loss of Rs 144.71 crore. The real supporter of benefit was Karnataka Rural Infrastructure Development Corporation Limited, which announced Rs 110 crore benefits. Karnataka had 90 working PSUs and 12 non-working PSUs which utilized 1.76 lakh staff. The venture (capital and long haul credits) in these 102 PSUs was Rs 1,03,717.40 crore as on March 31, 2017.

The administration contributed Rs 23,115.41 crore towards equity, loans and allows and subsidies in 2016-17. The PSUs enrolled a turnover of Rs 56,478 crore amid 2016-17, a development of 5% over the earlier year. In 2015-16, the turnover of all PSUs remained at Rs 53,788 crore according to their most recent concluded records. The turnover in 2016-17 was equivalent to 5.05% of the Gross State Domestic Product (GSDP).

Eight organizations, incorporated amid the year, did not conclude their first records. One organization “Bangalore Suburban Rail Company Limited” fused in March 2014, did not conclude its first records, the CAG said in its report.

The state government is shutting down 12 non-working PSUs and has chosen to shut down three working PSUs. The administration has likewise chosen to privatize eight working PSUs and in addition rebuild one working PSU, the CAG report included.