25 PSUs in State run up losses of ₹9,366.31 crore in 2016-17

July 10, 2018 01:09 am | Updated 08:16 am IST - CHENNAI

As many as 25 working public sector undertakings (PSUs) in Tamil Nadu incurred a loss of ₹9,366.31 crore during 2016-17, said a report of the Comptroller and Auditor General of India (CAG) tabled on the last day of the current Assembly session. The Tamil Nadu Generation and Distribution Corporation Ltd topped the list of loss-making entities with ₹5,786.82 crore, followed by the eight State transport Corporations with ₹3,049.39 crore – the report said.

As on March 31, 2017, the CAG said the State had 68 working PSUs (67 companies and one statutory corporation) and six non-working PSUs (all companies), which employed 2.84 lakh employees. In the case of the Tamil Nadu Civil Supplies Corporation, the loss is compensated by the State government, it added. Overall, the PSUs had accumulated losses of ₹78,854.25 crore as per their latest finalised accounts, CAG said.

The PSUs registered a turnover of ₹1,10,850.43 crore, equal to 8.54% of the State’s gross domestic product, indicating the important role played by them in the economy, it said.

Working PSUs incurred losses from 2012-13 to 2016-17. However, the loss decreased to ₹8,435.23 crore in 2016-17 from ₹13,616.74 crore in 2012-13, the report said.

The major contributors were the Tamil Nadu Newsprint and Papers Ltd (₹257.53 crore), the Tamil Nadu Power Finance and Infrastructure Development Corporation Ltd (₹129.74 crore), the Tidel Park Ltd (₹49.28 crore), the IT Expressway Ltd (₹33.39 crore), the Tamil Nadu Industrial Investment Corporation Ltd (₹30.97 crore) and the Tamil Nadu Magnesite Ltd (₹21.74 crore),

The CAG said the investment (in the form of capital and long-term loans) in 74 PSUs was ₹1,53,870.74 crore, as on March 2017. The government contributed ₹46,127.14 crore towards equity, loans and grants/subsidies during 2016-17, with the power sector accounting for 92.95% of the total investment, and the service sector accounting for 3.20% in 2016-17. The report recommended the State to decide on the closing of six PSUs, since they were not contributing to the economy.

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