Losses of state PSUs mount
PSEB alone accounts for Rs 1,389 crore
Jangveer Singh
Tribune News Service

Chandigarh, March 21
Public Sector Undertakings (PSUs) in the state are witnessing an increase in their losses during the past five years with the Punjab State Electricity Board (PSEB) alone accounting for a loss of Rs 1,389 crore in 2008-09.

According to a report of the Comptroller and Auditor General (CAG) released recently, the losses of PSUs increased from Rs 895 crore in 2004-05 to Rs 1,590 crore in 2008-09.

The report, while giving the analysis for 2008-09, states that out of the 33 working PSUs, 13 of them incurred a loss of Rs 1,630 crore. The remaining 14 PSUs just about stayed afloat registering a profit of only Rs 40 crore. It said the PSEB was responsible for most of these losses with the board recording a loss of Rs 1,389 crore. The Punjab State Warehousing Corporation reported a loss of Rs 79 crore, Punjab State Grains Procurement Corporation of Rs 69 crore and the Punjab State Industrial Development Corporation of Rs 48 crore.

Tracing the financial history of the PSEB, the report noted that the board had earned a profit of Rs 12.89 crore in 2005-06. It said even as the losses increased by the years, the turnover increased from Rs 6,701 crore in 2005-06 to Rs 7,913 crore in 2007-08.

It said this meant that the percentage of return on capital employed, which was 8.66 per cent during 2005-06, was negative at present.

Listing out the deficiencies, it said the PSEB failed to levy voltage surcharge on all large supply consumers resulting in under billing of Rs 266 crore. It said similarly the state government did not restructure loans depriving the board of a saving of Rs 229 crore. It said there was a consistent shortfall in achieving norms prescribed for repair of failed transformers during the past five years.

The report, while listing out various milestones fixed through an MOU signed in March 2001 between the Union Power Ministry and the state government as a joint commitment on reforms in power sector, said the PSEB failed to achieve key targets.

It said transmission and distribution losses, which were to be reduced to 18 per cent by March 2003, were 19.91 per cent in 2008-09. It said the board had also failed to replace all electro mechancical meters with electronic meters by March 2006. It said 34 lakh electronic meters had been installed against a target of 55 lakh.

The CAG report made out a case for dismantling the PSEB by claiming that the PSUs could discharge their role efficiently only if they were financially self-reliant. It also called for introducing a performance-based system for accountability for PSUs.