Shimla: The financial woes of Himachal Pradesh’s public sector undertakings (PSUs) show no signs of abating, with losses exceeding ₹4900 crore as revealed in the Comptroller and Auditor General’s (CAG) report for 2022-23. The report, presented by Chief Minister Sukhvinder Singh Sukhu in the Himachal Pradesh Legislative Assembly, paints a bleak picture of the financial health of the state’s boards and corporations.
According to the CAG, 12 major PSUs have collectively incurred losses of ₹4901.51 crore. The Himachal Pradesh State Electricity Board Limited (HPSEBL) tops the list with a staggering deficit of ₹1809.61 crore, followed by the Himachal Road Transport Corporation (HRTC) with losses of ₹1707.12 crore. Other significant contributors include the Himachal Financial Corporation (₹180.97 crore), Himachal Pradesh Power Transmission Corporation (₹395.91 crore), and the State Forest Corporation (₹113.04 crore).
Smaller entities, such as the State Handicrafts and Handloom Corporation and the State Minority Finance and Development Corporation, also add to the financial burden with losses of ₹12.42 crore and ₹5.72 crore, respectively.
Escalating Financial Crisis; Impact on the State Exchequer
The CAG report highlights that cumulative losses of PSUs have risen from ₹518.60 crore in 2021-22 to ₹604.94 crore in 2022-23. Additionally, the state government’s debt on HPSEBL has surged to ₹3012 crore, while HPMC faces a debt of ₹60.09 crore.
Discrepancies in financial reporting were also noted, such as the State Electronics Corporation understating employee benefit expenditures by ₹161.28 lakh, inflating its profit figures.
The continued poor performance of these PSUs has significant implications for the state’s economy. Himachal Pradesh is already burdened with a debt exceeding ₹75,000 crore, and the losses from PSUs further strain the exchequer. Funds that could have been directed towards infrastructure development, healthcare, and education are being diverted to cover the mounting deficits.
CAG’s Recommendations; The Road Ahead
The financial struggles of Himachal Pradesh’s PSUs are not new. Over the years, these enterprises have been criticized for inefficiencies, mismanagement, and lack of innovation. For instance, the Himachal Road Transport Corporation has long faced operational inefficiencies, while the State Electricity Board has grappled with rising input costs and revenue deficits.
The CAG has urged the state government to adopt stringent measures to address these losses. Recommendations include better financial management, restructuring of loss-making entities, and exploring public-private partnerships to revitalize underperforming sectors.
The report serves as a stark reminder of the urgent need for reforms in the state’s public sector enterprises. Without immediate action, the losses could deepen, further impacting Himachal Pradesh’s fiscal health and limiting its ability to invest in critical areas of development.
