New Delhi: If figures generated by the Central government are to be believed then the present condition of state PSUs is abysmal. Running into losses for more than five years, these PSUs have failed to serve the purpose for which they were established.

Figures show that PSUs in Uttar Pradesh, Punjab, Bihar and Jharkhand have been incurring losses which piled up with each passing year. In such a precarious condition, the PSUs are unable to generate the expected domestic output.

Sadly, the contribution of state PSUs to the state GDP growth is stuck at two and half percent and refuses to increase whereas the Central Enterprises has a contribution of 11.12 percent in the nation’s GDP.  

Based on the CAG figures, the Centre has concluded that the abysmal condition of the state PSUs cannot be altered without bringing about an improvement in their supervision. Due to lack of a proper supervision system, the government has been facing problems in assessing the profit and loss of the total 837 state PSUs. Therefore, it has decided to collect the PSU figures on its own.

In most of the states, the performance of the PSUs puts a question mark on their working conditions. 82 PSUs of UP have witnessed an increase of 300 percent deficit over the past six years. In Punjab, 26 PSUs have incurred continuous losses between 2004 and 2010, whereas the condition of PSUs in Bihar is more or less same.

Actually, most of the state governments give thrust only on profit making PSUs which are mainly in the power sector.

Despite the disparity in the earnings of the PSUs, their management refuses to hold itself accountable for the losses incurred by these units. The CAG too has questioned the management on this, but has failed to get satisfactory reply.  

JPN/Bureau