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State-owned PSUs incur Rs 1,265 cr loss in FY17

Last Updated 22 February 2018, 19:05 IST

Karnataka government-owned public sector companies have reported a loss of Rs 1,265.37 crore for the year ended March 2017.

Out of 90 working public sector units (PSUs) in the state, 22 have incurred losses, while 52   earned a profit during the year, according to a CAG report tabled in the Legislative Assembly on Thursday.

The working PSUs earned a profit of Rs 1,420.49 crore during the period. However, the losses during the year were lower by 19.4% compared with Rs 1,570.21 crore reported in 2015-16, while the profits were almost flat compared with Rs 1,425.50 crore reported in FY16, the CAG report said.

Among the PSUs that incurred losses, Karnataka Neeravari Nigam Ltd reported a huge loss of Rs 477 crore followed by Hubli Electricity Supply Company Limited (Rs 373) crore. Gulbarga Electricity Supply Company Limited reported a loss of Rs 131 crore loss.

However, during the year under review, working PSUs showed aggregate profit of Rs 155.12 crore compared with a net aggregate loss of Rs 144.71 crore.

The major contributor to profit was Karnataka Rural Infrastructure Development Corporation Limited, which reported Rs 110 crore profits.

Karnataka had 90 working PSUs and 12 non-working PSUs which employed 1.76 lakh personnel. The investment (capital and long-term loans) in these 102 PSUs was Rs 1,03,717.40 crore as on March 31, 2017.

The government contributed Rs 23,115.41 crore towards equity, loans and grants and subsidies in 2016-17. The PSUs registered a turnover of Rs 56,478 crore during 2016-17, a growth of 5% over the previous year. In 2015-16, the turnover of all PSUs stood at Rs 53,788 crore as per their latest finalised accounts. The turnover in 2016-17 was equal to 5.05% of the Gross State Domestic Product (GSDP).

Eight companies, incorporated during the year, did not finalise their first accounts. One company – Bangalore Suburban Rail Company Limited – incorporated in March 2014, did not finalise its first accounts, the CAG said in its report.

The state government is in the process of closing down 12 non-working PSUs and has decided to close down three working PSUs. The government has also decided to privatise eight working PSUs as well as restructure one working PSU, the CAG report added.

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(Published 22 February 2018, 18:38 IST)

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