Economic Challenges Mount as Key Public Undertakings Face Financial Turmoil
Shimla – In a concerning turn of events, two major entities, the Himachal Pradesh Road and Transport Corporation (HRTC) and the State Electricity Board, have emerged as the front-runners in recording substantial losses, collectively amounting to a staggering Rs 4000 crore. The grim financial situation of these giants raises questions about the overall fiscal health of the state’s public sector undertakings.
HRTC Takes the Lead with Rs 1966 Crore Loss
HRTC, the primary public transportation provider in Himachal Pradesh, finds itself in dire straits with a recorded loss of Rs 1966 crore. The corporation, responsible for the state’s road transport network, has faced numerous challenges, including rising fuel prices, maintenance costs, and competition from private operators. The mounting losses reflect a broader trend of financial strain that threatens the stability of essential services.
State Electricity Board Follows Closely with Rs 1824 Crore Loss
The State Electricity Board, tasked with providing power to the region, is not far behind, registering a loss of Rs 1824 crore. The energy sector has been grappling with increased costs of power generation, distribution challenges, and the need for infrastructure upgrades. The continuous escalation of losses underscores the urgency for strategic interventions to address the underlying issues affecting the board’s financial sustainability.
Statewide Public Sector Undertakings Facing Deepening Losses
According to the latest report presented in the Assembly, as of March 31, 2023, 13 out of the total 23 public sector undertakings in the state have reported a combined loss of Rs 5143 crore. What adds to the concern is the year-over-year increase in this loss, with a staggering rise of Rs 254 crore in the last twelve months. This financial downturn unveiled during the budget session not only highlights the state’s financial challenges for the upcoming year but also underscores the disheartening financial state of public undertakings.
32,028 Employees Grapple with Uncertain Future
The report on Public Sector Undertakings until March 31, 2023, paints a grim picture of the economic challenges faced by the government. Notably, these public undertakings collectively employed 32,028 individuals, with the State Electricity Board and Himachal Pradesh Transport Corporation being the largest employers with 15,123 and 11,085 employees, respectively.
Escalating Losses and Government Investment
In the previous financial year, the collective loss of public sector undertakings amounted to around Rs 4890 crore. However, the latest figures reveal a disconcerting escalation of Rs 254 crore, bringing the total loss to Rs 5143 crore. The state government has invested a significant share capital of Rs 4147 crore in these public sector undertakings, raising questions about the effectiveness of these investments in turning around the financial fortunes of HRTC and the State Electricity Board.
As the state grapples with economic challenges, the spotlight is now on policymakers and stakeholders to devise a sustainable plan to revive these struggling giants. This involves addressing not only the immediate financial concerns but also implementing measures to enhance operational efficiency, reduce dependencies on the state, and ensure long-term viability. The path ahead requires careful navigation through financial intricacies and a comprehensive approach to address the root causes of the losses faced by these vital public sector undertakings. While the challenges are formidable, strategic interventions and collaborative efforts are essential to secure the future of these entities and safeguard the economic interests of the region.
