The Comptroller and Auditor General of India (CAG) in its report for the year ended March 31, 2021, has pointed out that the accumulated loss incurred by 109 state public sector undertakings (PSUs) in 2020-21 was reported at Rs 42,839.19 crore.
The state government’s investment in sector-wise PSUs (power, agriculture and allied), infrastructure, service, finance, manufacturing and miscellaneous) total investment (equity and long-term loans) was Rs 4,23,109.39 crore as on March 31, 2021, against Rs 3,37,775.59 crore, a rise of 25.26%.
The investment consisted of 77.01% towards equity and 22.99% as long term loans. The long-term loans advanced by the state government constituted 1.35% 9Rs 1,308.30 crores) of the total loan term loans of the PSUs whereas 98.65% (Rs 95,950.99 crore) of the total long-term loans were availed from the Centre and other financial institutions.
According to CAG, the annual budgetary assistance to these PSUs ranged between Rs 9,759.55 crore and Rs 15,028.73 crore during 2018-19 to 2020-21.
The budgetary assistance of Rs 12,316.35 crore during 2020-21 included Rs 0.30 crore and Rs 12,316.05 crore in the form of equity and grants/subsidy respectively. ‘’The state government did. not provide any loans to these PSUs during 2020-21,’’ it said.
The state government provided significant assistance to Maharashtra State Electricity Distribution Company Limited (Rs 10,715.76 crore) and Tapi Irrigation Development Corporation (Rs 787.30 crore) in the form of grants and subsidies for different projects and to Police Housing and Welfare Corporation Limited (Rs 437.88 crore) for the purpose of construction of police quarters and administrative buildings.
Out of the budgetary assistance of Rs 12,316.35 crore given to the state PSUs during 2020-21, Rs 357.86 crore was given to the Maharashtra State Road Transport Corporation (MSRTC), a loss making statutory corporation. MSRTC receives budgetary support in lieu of transport-related subsidies announced by the state government to benefit various sections of the society such as students, ex-servicemen and senior citizens.
CAG said the state government gives guarantee to PSUs to obtain financial assistance from banks and financial institutions. The government charges the guarantee fee from the same and it varies from 0.50% to 2% depending upon the loanees.
The guarantee commitment of the state government decreased to Rs 48.49 crore during 2020-21 from Rs 56.95 crore in 2019-20. Further, two PSUs did not pay guarantee fees/commission which was payable during the year. The accumulated outstanding guarantee fees/commission was Rs 87.20 crore as on March 31, 2021.
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