Public sector enterprises in Bihar have become white elephants and a big drain on the exchequer, says a survey.
The State Economic Survey presented in the Bihar Assembly during the on-going session presented a bleak future for the 51 government-run companies -17 working and 34 non-functioning - and suggested merger of working PSUs and immediate closure of the non-functioning units.
The survey report said of the 51 government companies as on March 2008, the majority lacked rigorous accountability structure.
The report said the total investment in public sector as on March 2006 was Rs. 8631.32 crore, comprising equity of Rs. 622.70 crore (7.21 per cent) and long term loans for Rs. 8008.62 crore (2.79 per cent). Mainly due to poor turnover and ever increasing losses, the Bihar government has been left with no other choice but to wind up the loss making units, the survey suggested.
