Rajesh B. Nair

Pondicherry Textiles Corporation Limited tops the chart of sick PSUs

Puducherry Power Corporation Limited earns maximum profit

PUDUCHERRY: Six out of 13 public sector undertakings run by the territorial administration incurred a loss of Rs. 58.31 crore leading to an overall loss, and five PSUs earned profit of Rs. 23.10 crore during 2008-09.

The remaining two prepared their accounts on a “no-loss-no-profit basis,” according to a report filed by the Comptroller and Auditor General of India for the year ended March 31, 2009.

The Pondicherry Textiles Corporation Limited tops the chart of sick PSUs with its loss increasing from Rs. 26.18 crore in 2005-06 to Rs. 44.09 crore in 2007-08.

The turnover decreased from Rs. 70 crore to Rs. 44.72 crore during the period. The Swadeshee-Bharathee Textile Corporation Limited incurred a loss of Rs. 8.91 crore.

Among revenue-earning PSUs, the Puducherry Power Corporation Limited is in the forefront with its profit increasing from Rs. 8.91 crore in 2005-06 to Rs. 11. 85 crore in 2007-08. The turnover increased from Rs. 50.19 crore to Rs. 54. 31 crore during the same period.

The Puducherry Distilleries Limited earned a profit of Rs. 6.74 crore and the Pondicherry Industrial Promotion Development and Investment Corporation Limited registered a profit of Rs. 3.14 crore in 2008-09, the report said.

Noting that the PSUs account for a noticeable chunk of the Union Territory's economy, the report said that they together registered a turnover of Rs. 399.89 crore in 2008-09 as per their latest finalised accounts as on September, 2009.

The PSUs incurred an aggregate loss of Rs. 35.21 crore and as on March 31, 2009, they employed a total of 6,907 people in different sectors.

The total investment of government in the 13 PSUs had gone up from Rs. 437.81 crore in 2003-04 to Rs. 658.10 crore in 2008-09. Attributing the loss to the PSUs' deficiency in financial management, planning, implementation of project, in running their operations and monitoring performance, the report said that the PSUs incurred avoidable expenditure/loss of revenue to the extent of Rs. 16. 68 crore and infructuous investment of Rs. 9.38 crore, which were controllable with better management.