Loss-making public service enterprises rise to 17, incur Rs 195.37 Cr setback in 2022-23: CAG
During 2022-23, six loss- making SPSEs received budgetary support of Rs 454.02 crore by way of equity, loans and grants.;
The CAG audit also observed that none of the 14 working SPSES, whose accumulated losses completely eroded their equity capital. (Photo- 'X')
Guwahati, Mar 22: The number of loss- making State Public Sector Enterprises (SPSES) increased from 11 in 2021-22 to 17 in 2022-23, and 89 percent of the total losses in 2022-23 was contributed by Assam State Transport Corporation and Assam Petrochemicals Limited (APL).
The total losses of the 15 companies and two corporations in 2022-23 was Rs 195.37 crore, according to a CAG report tabled in the State Assembly on Friday.
ASTC contributed the highest loss of Rs 106.53 crore mainly due to reduction in its operating and non- operating revenue from Rs 165.05 crore in 2021-22 to Rs 80.20 crore in 2022-23.
APL contributed losses to the tune of Rs 67.36 crore, mainly due to hike in the procurement price of natural gas and decline in sales price of methanol in the international market. As a result, the cost of input material consumed by APL had increased from Rs 28.97 crore to Rs 96.14 crore.
During 2022-23, six loss- making SPSEs received budgetary support of Rs 454.02 crore by way of equity, loans and grants.
Out of it, Rs 380.13 crore was meant for salary-related expenses of their employees.
The employee expenses of five companies - Assam Seed Corporation Limited, Assam Plantation Crop Development Corporation Limited, Assam Small Industries Development Corporation Limited, Assam State Fertilizer and Chemicals Limited and Assam Government Marketing Corporation Limited could not be met out of their turnover, while the turnover of remaining eight SPSES, including three SPSES with zero turnover, was not adequate to cover their employee expenses.
The CAG audit also observed that none of the 14 working SPSES, whose accumulated losses completely eroded their equity capital, had adequate recourses to achieve the envisaged objectives.
"Accumulation of losses of the SPSES had eroded public wealth, which is a cause of concern and the Government of Assam needs to review the working of these SPSES to either improve their profitability or close their operations. The Assam government may also review/downsize the staff requirement of the SPSES and bring their establishment cost to acceptable level. It may also merge the SPSES to one or two with defined verticals of business within the SPSES to achieve economies of scale," the audit suggested.
By
Staff Reporter
