Net worth of 18 State public sector undertakings in Tamil Nadu completely eroded, says CAG
The Tamil Nadu government had extended budgetary support amounting to ₹6,744.87 crore to TANGEDCO, according to a report of the Comptroller and Auditor-General on PSUs. File | Photo Credit: The Hindu
They are 2 power sector corporations and 16 non-power sector establishments
The net worth of 63 State government companies and corporations was negative at ₹73,714.81 crore as against their paid-up capital of ₹61,957.03 crore, and the accumulated losses of 18 public sector undertakings (PSUs) had completely eroded their net worth, according to the report of the Comptroller and Auditor-General on PSUs for the year ended March 31, 2020.
The report said the net worth of 18 PSUs stood at a negative ₹1,08,863.78 crore against the equity investment of ₹31,869.56 crore. These companies are two power sector undertakings and 16 non-power sector undertakings.
“It is pertinent to mention that the State government had extended budgetary support in the form of grant/subsidies, amounting to ₹6,744.87 crore, to one power sector PSU (TANGEDCO) and ₹1,093.52 crore to eight non-power sector PSUs in 2019-20,” the report said.
The number of PSUs (including one statutory corporation) that earned a profit was 27 during 2019-20, compared with 32 during 2018-19. The return on equity of these 27 PSUs was 11.84% during 2019-20, compared with 11.06% of 32 PSUs during 2018-19. The CAG excluded six loss-making PSUs and added one during 2019-20, compared with the previous year.
The report also found that three PSUs — Tamil Nadu Power Finance and Infrastructure Development Corporation Ltd.; State Industries Promotion Corporation of Tamil Nadu Ltd.; and Tamil Nadu Industrial Development Corporation Ltd. — accounted for 81.02% of the total profit earned by 27 PSUs during 2019-20.
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