Govt mulls privatisation of loss making PSUs

NL Correspondent

SRINAGAR: Government is mulling privatization of some of the public sector undertakings (PSUs), that have turned loss making assets for the state.

The PSUs were set up to generate revenue and create new job opportunities in the state.  However, official data reveals that out of 23 PSUs, around 12 have incurred heavy losses over the years. The PSUs like SRTC, SIDCO, JK Forest Corporation, JK Industries Limited, JKWDC, J&K Horticulture Produce Marketing and Processing Corporation Limited, JKTDC, J&K Minerals are running in losses worth crores of rupees.

The SRTC has witnessed losses over Rs 300 crore for the last nine-years. The official data reveals that SRTC suffered Rs 25 crore losses during 2012-13, around 40 crore in 2013-2014 and 30 crore in 2014-2015. During 2015-2016, the corporation suffered around Rs 30 crore losses.

The corporation had around 1800 vehicles including buses and trucks in 1900s, whose number has reduced to less than 900.  Sources said the government has not provided it any financial assistance for the past many years.

The SICOP did business turnover of Rs 600 crore in last fiscal as against the target of one thousand crore, thus losing a business of 400 crores.

The JK Cements is also running in heavy losses and has failed to pay salaries to their employees for many months, who would often come to the streets seeking releasing of their remunerations.

The JK Tourism Development Corporation according to sources is also running in losses with liabilities of employees having touched to Rs 30 crores. It suffered losses worth Rs 94.89 lakh in 2011-12, Rs 1.09 crore in 2012-13 and 1.31 crore in 2013-14. “The process has been started of leasing out some of assets of the TDC,” an official said.

Although, some of the PSUs are not running in losses but there has been a considerable decline in their profit level over the years.

“Government has taken a strong note over losses of some of the PSUs in the state despite making huge investment on them,” an official of Finance department said.

He attributed the dismal performance of these PSUs to overstaffing, lack of professionalism and political intervention.

An official of industries and commerce confirmed that government was contemplating to run some PSUs on public private partnership mode.  “But final decision has not been taken over privatization of some of the PSUs so far,” the official said.

Earlier, Minister of state for Transport Sunil Sharma has said that SRTC was facing problems in continuing its operations. “We are going to start its operation on public private partnership mode. Both the SRTC and the private operators will be the shareholders of the profit,” he has said.