Shimla, Dec 21,
The financial health of Himachal Pradesh’s public sector undertakings (PSUs) has deteriorated significantly, according to the Comptroller and Auditor General’s (CAG) report for 2022-23. Chief Minister presented a sobering account of state revenue receipts and the state’s public sector units in the Himachal Pradesh Assembly, revealing that 12 corporations and boards collectively recorded losses of ₹4,901.51 crore.
The report indicates that the Himachal Pradesh State Electricity Board Limited (HPSEBL) leads the list, suffering a loss of ₹1,809.61 crore. It is followed by the Himachal Road Transport Corporation (HRTC), which reported a deficit of ₹1,707.12 crore, and the Himachal Pradesh Financial Corporation, which recorded losses amounting to ₹180.97 crore. These growing deficits underscore the urgent need for comprehensive financial restructuring and operational reforms in these organizations.
The CAG report further highlights the financial struggles of other state-run enterprises, including the Himachal Pradesh Horticultural Produce Marketing Corporation (HPMC) with losses of ₹83.87 crore, the Agro Industries Corporation at ₹13.48 crore, and the Himachal Pradesh State Forest Corporation with a deficit of ₹113.04 crore. Additionally, the Himachal Pradesh Power Transmission Corporation reported losses of ₹395.91 crore, the Himachal Pradesh Tourism Development Corporation Limited faced losses of ₹29.27 crore, and the Himachal Pradesh Handicrafts & Handloom Corporation Ltd. recorded ₹12.42 crore in losses. Smaller corporations like the Himachal Pradesh Minority Finance and Development Corporation and the Sri Naina Devi Ji and Anandpur Sahib Development Corporation also contributed to the overall financial strain, with losses of ₹5.72 crore and ₹0.03 crore, respectively.
HPSEBL, as the highest contributor to the cumulative losses, has a deficit of ₹1,809.61 crore. The corporation’s financial distress is driven by operational inefficiencies, high transmission losses, and challenges in tariff collection.
HRTC, essential to the state’s public transportation system, also faces a staggering loss of ₹1,707.12 crore. Factors such as high operating costs, low revenue from fares, and frequent maintenance needs due to rough terrains have further strained the corporation’s finances.
Meanwhile, the Himachal Pradesh Financial Corporation has incurred losses of ₹180.97 crore, mainly due to loan defaults and ineffective recovery systems.
The financial struggles of other PSUs, such as the Power Transmission Corporation and the Forest Corporation, reflect deeper systemic inefficiencies in resource management and operational barriers. These mounting losses have far-reaching consequences for the state economy, limiting investment in development projects and increasing reliance on borrowings, which ultimately strains public finances.
The CAG report stresses the need for immediate reforms to address the financial woes of these PSUs. The state government must focus on enhancing operational efficiencies, curbing wastage, and improving service delivery. It should revisit financial management strategies to improve revenue collection and control expenditures. The use of technology to streamline operations and reduce costs is also critical, as is exploring public-private partnerships (PPPs) to bring in fresh capital and expertise.
Addressing the financial challenges of these PSUs will be no easy task for the state government. However, a combination of targeted interventions, strategic planning, and transparent governance could help turn these entities into profitable ventures, reducing their financial burden on the state’s resources.
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