Jammu KashmirNo attempts at making PSUs profit earning

No attempts at making PSUs profit earning


No attempts at making PSUs profit earning

Tawi, March 11: (KIP):- Right from the beginning successive state Governments have not taken anyStep for making Public sector units profit making units with the result these PSUe are losing precious money Fourteen government companies and two statutory corporations owe Rs. 1,450 crore to the State exchequer as successive governments since 1996 could not initiate remedial measures in the once-flourishing Public Sector Undertakings (PSU) in Jammu and .



Reports revealed, that  a cumulative red balance of Rs. 1,450.46 crore with the 16 PSU. J&K Power Development Corporation tops the list with the cumulative borrowing of Rs. 816.03 crore, followed by the J&K State Road Transport Corporation (SRTC) and J&K State Industrial Development Corporation Ltd who owe the State government Rs. 129.70 crore and Rs. 100.44 crore respectively.




The red balance of these PSU includes equity of Rs. 55.22 crore, loans and grants worth Rs. 1,387.28 crore besides subsidies worth Rs. 7.96 crore. While the J&K SRTC has a liability of Rs. 129.70 crore, J&K State Financial Corporation, another statutory corporation, has its red balance running into Rs. 80 crore.



Among the government companies, the near-defunct J&K Minerals has a liability of Rs. 74.86 crore, followed by J&K Industries Ltd (Rs. 66.62 crore), J&K State Handloom Development Corporation (Rs. 36.56 crore), J&K Handicrafts (Sales & Export) Corporation (Rs. 25.56 crore) and J&K State Women's Development Corporation (Rs. 22.19 crore). Even the J&K State Development Corporation owes Rs. 6.95 crore despite registering profit in the last few years.




Contrary to its claims of taking austerity measures to reduce the burden on the state exchequer, the government today appointed 16 politicians of the PDP and the BJP as vice-chairpersons of the financially overburdened public sector enterprises (PSEs).

These politicians are entitled to a monthly salary of Rs 80,000 per month, besides hefty perks and allowances to “serve” the PSEs which are already facing huge losses for the past many years.




A senior officer in the General Administration Department (GAD) today said each of these ruling coalition politicians would be paid Rs 1.5 lakh per month from the coffers of the state government, which is already facing financial crunch. Besides the monthly salary, perks, allowances and other benefits, these politicians are entitled to chauffeur-driven vehicles, personal staff and other advantages.




Sources said the GAD had already issued orders for the appointment of 16 politicians, and the formal appointment letters would be given soon.



Instead of taking steps for bringing out these PSU out of the r ed the Government has put added financial burden. It is not for the first time that the state Government has appointed 16 PDP and BJP members as vice chairman of these corporations. Had the Government taken some measures for toning up production and services each corporation could have been converted into profit making body so that they could also help the state in resolving the problem of unemployment.(KIP)



The Northlines is an independent source on the Web for news, facts and figures relating to Jammu, Kashmir and Ladakh and its neighbourhood.


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