20 PSUs in J&K witnessing capital erosion, points out CAG report
Says net worth of 13 enterprises has been completely eroded
Srinagar: Jammu and Kashmir’s 20 public sector undertakings (PSUs) are experiencing capital erosion while the net worth of the 13 enterprises has been completely eroded, says the recent report by the Comptroller and Auditor General of India (CAG).
The report says that on March 31, 2022, there were 20 PSUs with accumulated losses of Rs 3,881.66 crore and the net worth of 13 out of 20 PSUs had been completely eroded by the accrued losses. The net worth of these 13 PSUs has fallen down to (-) Rs 3,368.15 crore despite an equity investment of Rs 505.42 crore.
Jammu & Kashmir Road Transport Corporation as per the latest finalised accounts is at the top of the government-run enterprise whose liabilities outweigh its assets. Its loss has swelled to Rs 1,634.94 crores and the net worth has fallen to Rs -1,426.98 crores, it said.
Next in the order of this fall is the Jammu & Kashmir Industries Limited, having an accumulated loss of Rs 907.17 crores and net worth of Rs -890.90 cores.
It is followed by Jammu & Kashmir Forest Development Corporation Limited, whose loss has piled up to Rs 249.13 crores and the net worth has collapsed to Rs -240.10 crores .
The fourth in the order of this negativity is the Jammu & Kashmir Minerals Limited whose losses piled up to Rs 225.01 crores and the net worth having gone down to a minus of Rs 216.85 crores.
The Jammu & Kashmir Handicrafts (Sales and Export) Development Corporation Limited is also at its terminal end and its losses have inflated to Rs 170.06 crores and the net worth sunk to an abysmal of Rs -161.54 crores.
The Jammu & Kashmir Handloom Development Corporation Limited is also in a state of fatal sickness. Its losses have amassed to Rs 132.99 crores and the net worth diminished to Rs -128.00 crores.
The other PSUs according to the CAG whose capital has been eroded completely include Jammu & Kashmir Financial Corporation, Jammu & Kashmir Agro Industries Development Corporation Limited, Jammu & Kashmir Horticulture Produce Marketing and Processing Corporation, Jammu & Kashmir Scheduled Castes, Scheduled Tribes and Back-ward Classes Development Corporation Limited, Jammu & Kashmir State Industrial Development Corporation Limited.
CAG says Kashmir Power Distribution Corporation Limited and Jammu Power Distribution Corporation Limited are also in dire straits.
But of the 13 government-run enterprises who have eroded their capital, three have started experiencing calm after the storm and earned a profit of Rs 3.29 crore during 2021-22.
Rashid Paul is Associate Editor at Kashmir Images.
He can be reached at [email protected]
