‘9 PSUs in J&K Non-Operational For Last 5 To 29 Yrs’

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Srinagar: There are nine Public Sector Undertakings which are non-operational for the last five to 29 years, the Comptroller and Auditor General of India has said.

The CAG, in its report on social, general and economic (non-PSUs) in the erstwhile state for the year ending 31 March, 2019 said among the nine PSUs, four are in Power Sector alone and have investment of Rs 56.60 crore towards share capital (Rs 55.77 crore) and long term loans (Rs 0.83 crore), by the State Government.

The nine PSUs include Jammu and Kashmir Power Transmission Company Limited, Jammu Power Distribution Company Limited, Kashmir Power Distribution Company Limited, Jammu and Kashmir Power Trading Company Limited, Jammu and Kashmir State Handloom Handicrafts Raw Material Supplies Organisation Limited (A Subsidiary of Himalayan Wool Combers Limited), Tawi Scooters Limited, Himalayan Wool Combers Limited, Jammu and Kashmir Road Development Corporation Limited and Jammu and Kashmir International Trade Centre Corporation Limited

In all there are 42 PSUs, 33 of them are working. The PSUs were established to carry out activities of commercial nature keeping in view the welfare of people and occupy an important place in the economy of the J&K, the CAG said.

The PSUs consist of State Government Companies and Statutory Corporations. As on 31 March 2019, there were 421 PSUs (six in Power Sector and 36 in Sectors other than Power Sector), including three Statutory Corporations under the audit jurisdiction of the CAG.

The 33 working PSUs, the CAG said, registered an annual turnover of Rs 9,784.90 crore and earned an aggregate profit of Rs 448.02 crore as of 30 September 2019 as per their latest finalized accounts. “This turnover was equal to 6.33 per cent of Gross State Domestic Product (GSDP), which was rs 1,54,441 crore (at current prices) for the State for 2018-19.”

One PSU, Jammu and Kashmir Bank Limited, having a total paid-up equity of Rs 55.70 crore is listed on the stock exchange since July 1998. “This paid-up equity of Rs 55.70 crore of the Bank is held partly by the State Government (59.23 per cent ) and the remaining part by Foreign Institutional Investors, Resident Individuals and others (40.77 per cent).

“During the year 2018-19, six PSUs were incorporated and no PSU was closed down. There are two power generation Companies, Jammu and Kashmir State Power Development Corporation Limited (JKSPDC) and Chenab Valley Power Project Private Limited (CVPPP),” the CAG said in the report.

“The Chenab Valley Power Project Private Limited (CVPPP) which is a joint venture Company, has an investment of Rs 1,439.18 crore as of March 2019 (JKSPDC: Rs 687.55 crore, NHPC: Rs 747.55 crore and PTC: Rs 4.08 crore.”

As a consequence of the unbundling of the Power Sector, one power transmission Company— Jammu and Kashmir Power Transmission Company Limited, two power distribution companies— Jammu Power Distribution Company Limited and Kashmir Power Distribution Company Limited (June 2013) and one Company— Jammu and Kashmir Power Trading Company Limited— exclusively to conduct trading activities in power were incorporated on behalf of the State Government. “However, these Companies which have been incorporated between March 2013 and June 2013, are yet to start their commercial operations as of March 2019,” the CAG noted. “In the absence of commercial operations by these companies, the power transmission and distribution activities continue to be carried out by the Power Development Department of Jammu & Kashmir Government.” (GNS)

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