Most PSUs drew a blank under UDF

Thiruvananthapuram: The former UDF government, it has now been revealed, has badly mismanaged the public sector units in the state. In 2010-11, during the last fiscal of the erstwhile LDF regime, the PSUs together registered a profit of Rs 539.29 crore. In 2014-15, the UDF dispensation's penultimate year, the gains plummeted to an aggregate loss of Rs 391.42 crore.

This was stated in the CAG Report on Public Sector Undertakings, which was tabled in the Assembly on Tuesday. However, the silver lining is the turnaround of KSEB, which has emerged as the PSU with the largest profit, Rs 140.42 crore.

“Latest finalised accounts of all working PSUs in the state has revealed that while 50 PSUs earned profit of Rs 498.47 crore, 53 PSUs incurred a total loss of Rs 889.89 crore and four working PSUs had no profit or loss,” the report said. KSRTC is the biggest loser, with a loss of Rs 508.22 crore.

PSUs in the state had performed poorly even though budgetary assistance to them in the form of equity, loans, grants and subsidies increased from Rs 1046.22 crore in 2010-11 to '2106.56 crore in 2014-15. The investment in PSUs, too, had grown by 142.41 percent from Rs 8222.80 crore in 2010-11 to Rs 19,933.20 crore in 2014-15. However, the return on capital also showed a declining trend; from 8.32 percent in 2010-11 it fell to 4.10 percent in 2013-14, however rebounding in 2014-15 to 5.28 percent. Debt also increased from Rs 3533.36 crore in 2010-11 to Rs 8912.96 crore in 2014-15.

The 107 working PSUs in the state, employing 1.28 lakh people, registered a turnover of '19,194.06 crore. This was 4.25 percent of the GSDP. The thrust of PSU investment was mainly in power sector which increased from Rs 2646.51 crore in 2010-11 to Rs 7225.41 crore in 2014-15, an increase of 173 .02 percent. Investment in service sector also has increased substantially from Rs 1154.43 crore in 2010-11 to Rs 4322.68 crore in 2014-15, registering an increase of 274.44 percent.