Despite of Government’s Effort to Revive PSU, 18 of Them Remain in Red
It is seen that the government of Jammu and Kashmir had put on efforts to revive the 18 public sector undertakings. The Mehbooba Mufti’s government had put efforts to bring these PSUs on track. However, in spite of such efforts, the PSUs remain in the red. The losses suffered by the PSUs are of approximately Rs 191 crore over the last two years.
The Jammu and Kashmir government revealed in the State Assembly that J&K Cements limited is leading the table of such PSUs with a loss of Rs 46.74 crore-Rs 31.73 crores in 2016-17. In the current year, the loss is of approximately 15.01 crore.
On the other hand, the government also declared that there are two PSUs, which are making a profit after registering the losses in the previous financial year. Those two PSUs include JK Minerals limited and JK Projects Construction Corporation that also joined six other profit-making PSUs.
In the year, 2016-17, the JK State Financial Corporation has slipped into the losses of 1.02 crore. While in the previous year, the PSU was making a profit of Rs 45.73 lakhs. It has become the 10th loss-making PSU in the state according to the finance department of the state.
There are many PSUs, who in losses for a long time. However, the state government has confirmed to give financial support so that the salaries of agitated employees can be distributed.
In the year 2011, the previous government had also introduced a scheme called golden handshake, which was a part of efforts to revive the dual PSUs. Several other PSUs, which are suffering from loss are JK State Road Transport Corporation. It is facing the loss of Rs 31.44 crores in the year 2017.
However, JK Handloom Corporation is among those PSUs, which has made remarkable progress. In the year 2016, the loss of the PSU was Rs 13.56 crore.
In the list of companies, which are showing slight improvement and recovering from loss is Horticultural Produce Marketing and Processing Corporation. It is been observed that in the year 2015-16, the loss was of approximately Rs 6.59. But last year in 2016-2017, the company was a loss of Rs 6.59 crore by showing some signs of improvement.
Apart from this company, Scheduled Caste, Scheduled Tribe, Backward Class Development Corporation is showing signs of improvement. On the other hand, JK Industries limited failed to restrict the losses, which was Rs 7.06 crore in 2016-17.