PSUs serving no purpose: Bihar Economic Survey

According to a an economic survey carried out in Bihar, poor turnover and constantly increasing losses are plaguing the state’s public sector units

State-run or public sector units (PSUs) in Bihar have become white elephants and a big drain on the exchequer, says a survey, reports PTI.

The state Economic Survey presented in the Bihar Assembly during the ongoing 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 that of the 51 government companies as on March 2008, the majority lacked rigorous accountability structures.

The report said that the total investment in the public sector as on March 2006 was Rs8,631.32 crore, comprising equity of Rs622.70 crore (7.21%) and long-term loans for Rs8,008.62 crore (2.79%). 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.

The Economic Survey report said that the four statutory corporations of the state government—Bihar State Electricity Board (BSEB), Bihar State Financial Corporation (BSFC), Bihar State Road Transport Corporation (BSRTC) and Bihar State Warehousing Corporation (BSWC) are running at huge losses.

The loss of BSEB increased to Rs854.61 crore in 2006-07 from Rs54.30 crore in 2004-05. "The accumulated loss of the BSEB has been increasing steeply and stands at more than Rs1,524 crore at the end of 2007-08. The return on investment has been negative and the government has paid a subsidy of more than Rs2,300 crore during the period from 2004-05 to 2006-07," the survey report said.

The total government loans due from the Board stood at more than Rs6,200 crore as on March 2007, the Survey said.
 

User

COMMENTS

Shadi Katyal

7 years ago

Has any PSU served the nation at all. Are these not never ending holes where money keeps despairing and there is no productivity as well as more employees.How many such projects have any return?
Take AirIndia,Banks,STC,MMTC,Ashoka and so on.
It is time to get rid of such white elephants and let private sector take the responsibility

Soccer managers carry impossible dreams of millions

Laurent Dubois, a history professor at Duke University in North Carolina and an expert on the World Cup, likens the formation of a national soccer team to nation building. “We don't see nations take form these days, but that is what the managers are doing. When those teams step on the field, there is a clear sense that there is the country.”

Read Article...

User

Narendra Modi’s farm miracle

Gujarat’s agriculture is expected to grow by at least 9% year-on-year in the coming years, compared with just 2-2.5% for the rest of the country.

Read Article...

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)