‘PSUs in Bihar serving no purpose’

Public sector enterprises in Bihar have become white elephants and a big drain on exchequer.

Public sector enterprises in Bihar have become white elephants and a big drain on the exchequer,says a survey.

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

Story continues below this ad

The report said the total investment in public sector as on March 2006 was Rs 8631.32 crore,comprising equity of Rs 622.70 crore (7.21 per cent) and long term loans for Rs 8008.62 crore (2.79 per cent). 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 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 from Rs 54.30 crore in 2004-05 to Rs 854.61 crore in 2006-07. “The accumulated loss of the BSEB has been increasing steeply and stands at more than Rs 1,524 crore at the end of 2007-07. The return on investments has been negative and the government has paid a subsidy of more than Rs 2,300 crore during the period from 2004-05 to 2006-07,” the survey report said.

The total government loan due from the Board stood at more than Rs 6,200 crore as on March 2007,the Survey said.

Tags:
Bihar
PSU

Police personnel seen to control the situation during a massive protest over the statehood demand and the inclusion of Ladakh under the Sixth Schedule, in Leh on Wednesday. (ANI Video Grab)

Statehood protest takes violent turn in Ladakh, BJP office set ablaze in Leh

India3 hr ago

Protests in Ladakh turned violent as students and youth organisations demanded statehood and Sixth Schedule status. Two elderly protesters fainted, prompting a shutdown call. A BJP office and security vehicle were set on fire. Activist Sonam Wangchuk urged for a peaceful approach. The demand for Sixth Schedule status is due to Ladakh's tribal-majority population and direct central administration.

View all shorts

Live Blog