E-Paper
CAG report: UPPCL contributed 45 pc of total losses of SPSEs
The report pointed out that seven of the 27 SPSEs incurred a loss of ₹100 crore or more and contributed to 99% of the total loss; these included five SPSE’s of the power sector
LUCKNOW Uttar Pradesh government’s 39 out of 72 functional state public sector enterprises (SPSEs) earned a profit of only ₹2169.50 crore while its 27 SPSEs incurred losses amounting to ₹32,393.08 crore.
Four SPSEs did not submit their first financial accounts while two reported no profit no loss, as per their latest finalised financial statements, according to the Comptroller and Auditor General of India (CAG) report on SPSEs (for the period ending on March 31, 2023 ) tabled in the state legislative assembly on Friday.
The UP Power Corporation Limited (UPPCL) contributed to nearly 45% ( ₹14572.24 crore) of the total losses of the SPSEs, it stated.
The CAG report pointed out that seven of the 27 SPSEs incurred a loss of ₹100 crore or more and contributed to 99% of the total loss. These included five SPSE’s of the power sector. Besides UPPCL, which incurred a loss of ₹14572.24 crore (2022-2023), other power sector companies that figured on the list included Purvanchal Vidyut Vitaran Nigam Limited that incurred a loss of ₹6610.27 crore (2022-2023). The Dakshinanchal Vidyut Vitaran Nigam Limited incurred a loss of ₹5073.77 crore (2022-2023) while Madhyanchal Vidyut Vitaran Nigam Limited’s total loss was ₹4819.92 crore in 2022-2023.
UP Power Transmission Corporation incurred a loss of ₹556.26 crore, according to the financial statement of 2021-2022.
The CAG observed that the 39 SPSEs that earned profits included six that contributed more than 89% ( ₹1933,80 crore) of the total profit of ₹2169.50 crore. The PVVNL alone accounted for 46% ( ₹991.67 crore) of total profit of SPSEs. Others that contributed to the profit included UP Jal Vidyut Nigam Limited (12.72%), UP Rajya Vidyut Utpadan Nigam Limited (10.86%), UP State Warehousing Corporation (7.63%), UP Avas Vikas Parishad (6.67%) and UP Rajya Nirman Nigam Limited (5.55%).
It may be mentioned that 68 out of 72 functional SPSEs, including 12 SPSEs of the power sector, had 4.10% share of turnover in the gross state domestic product (GSDP) in 2022-2023. This included turnover of ₹77,053.32 crore (3.41 percent share of turnover) from the power sector while other than power sector companies contributed only 0.69 percent.
The CAG analysis revealed that the net worth of 16 SPSEs had completely eroded. The paid-up capital, free reserves and surplus of these SPSEs was ₹26,891.32 crore while accumulated losses and deferred revenue expenditure stood at ₹37,929.25 crore. Of these 16 SPSEs, the maximum net worth erosion was observed in five SPSEs that included DVVNL ( ₹-6061.51 crore), UP Jal Nigam ( ₹1820.15 crore), Kanpur Electricity Supply Company Limited ( ₹1755.65 crore), UP Financial Corporation Limited ( ₹719.11 crore) and The Pradeshiya Industrial and Investment Corporation of UP Limited ( ₹241.17 crore).
