Mudassir Ahmad
SRINAGAR: Having been set up to generate revenue and create new job opportunities in the state, most of the public sector undertakings (PSUs) are running in losses with government contemplating to make privatization and outsource some of the PSUs that have incurred heavy losses over the years.
The PSUs consist of state government companies and statutory corporations. However, official data reveals that, of the 23 PSUs, 12 have incurred heavy losses despite Government making a huge investment on them 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 Crore of rupees.
Official sources attribute the dismal performance of these PSUs to overstaffing, lack of professionalism and accountability and political intervention.
Sources said many among these PSUs have failed to pay salaries to their employees, who had come to the streets several times seeking releasing of their remunerations.
“Although the investment in these units was made in Crore of rupees but due to lack of political will and lack of professionalism, they are running in such heavy losses,” they said.
It has been learnt that these PSUs have assets worth crores spread all over the state but officials said the funds need to be utilized effectively. It has also increased the employment level since these PSUs which run in losses could not generate new job opportunities to the youth over the years. “Their reformation can help address the problem of unemployment to some extent as new opportunities can be created by the expansion of units or services.”
Sources 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.
The SRTC has witnessed heavy losses over Rs 550 crore loss due to “official apathy and mismanagement” for the last nine-years. Officials revealed 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, officials said the Corporation suffered around Rs 30 crore losses.
Similarly, the SICOP did business turnover of Rs 600 crores last fiscal as against the target of one thousand crore, thus losing a business of 400 crores. They said that in the 84th board of directors meeting the target of one thousand crore.
Official sources said the government is now mulling privatisation of some of the loss-making PSUs in the state. “Government has taken a strong note over losses of some of PSUs in the state despite making huge investment on them. The government's investment has proved unproductive so far with their loss levels further increasing,” they said.
Government as per sources has realized that there was a tremendous scope to improve the functioning of the units to improve productivity and quality of products but needs professionals to run these units.
“Some of the loss making units may also be outsourced to generate revenue to the state and create new job opportunities in J&K,” the official said.
