Himachal Pradesh Public Sector Enterprises Report Significant Loss Increase to Rs 4,778 Crore

The financial health of state public sector enterprises (PSEs) in Himachal Pradesh has deteriorated, with accumulated losses rising from Rs 3,953.70 crore in 2020-21 to Rs 4,778.70 crore in 2022-23. A report by the Comptroller and Auditor General (CAG), presented in the Assembly, highlighted these figures. Despite this, 13 state PSEs managed to earn a profit of Rs 20.21 crore by September 30, 2023.

Financial Challenges and Losses

The report revealed that nine out of 14 PSEs have seen their net worth completely eroded due to losses. Their combined worth stands at -Rs 1,932 crore against an equity investment of Rs 2,085.59 crore. Additionally, three PSEs owe the government loans totalling Rs 3,132 crore. The Himachal Pradesh State Electricity Board leads the list of loss-making enterprises with accumulated losses of Rs 1,809.61 crore.

Other significant contributors to the losses include the Himachal Pradesh Road Corporation with Rs 1,707.12 crore and HP Power Corporation with Rs 552 crore. The Himachal Pradesh Power Transmission Corporation reported losses of Rs 395.91 crore, while HP Financial Corporation's losses stood at Rs 180.97 crore. The State Forest Corporation and HPMC also faced substantial losses of Rs 113.04 crore and Rs 83.87 crore respectively.

Profitability and Dividend Issues

Among the profitable PSEs, four did not generate enough profit to declare dividends. The remaining PSEs earned a collective profit of Rs 14.88 crore but also refrained from declaring dividends. This indicates ongoing financial challenges despite some profitability.

The CAG report also criticised the PSEs for not adhering to timelines for submitting financial statements. It noted that there were arrears in 73 accounts across 27 PSEs, highlighting issues in financial management and reporting within these enterprises.

The findings underscore the need for improved financial oversight and strategic planning within Himachal Pradesh's public sector enterprises to address these mounting challenges effectively.