The Hindu Business Line : Kerala PSUs incur net loss of Rs 221.5 cr

According to the review of the performance of PSUs by the Bureau of Public Enterprises, presented in the State Assembly, the net loss rose marginally during the year from the loss of Rs 221.22 crore incurred the previous year.

This is despite the additional investment of Rs 1,625.48 crore made in the PSUs in 2003-04.

In fact, the combined turnover of the PSUs has gone up to Rs 7,593 crore from Rs 6,851 crore, representing a rise of 10.80 per cent.

The highest turnover was recorded by the Kerala State Electricity Board (KSEB) at Rs 2,969 crore, followed by the State Beverages Corporation (Rs 1,106 crore) and the Kerala State Road Transport Corporation (Rs 668 crore).

The review notes that, during the year, 40 enterprises had reported profits totalling Rs 283.46 crore, against Rs 277.97 crore earned by 33 enterprises in 2002-03. The remaining 49 active enterprises incurred losses amounting to Rs 505 crore.

"The top profit-making PSUs included KSEB (Rs 91.83 crore), Kerala Minerals and Metals Ltd (Rs. 46.48 crore), Kerala State Financial Enterprises (Rs 42.10 crore), State Beverages Corporation (Rs 19.70 crore) and Oil Palm India (Rs 11.91 crore)."

Among the loss-making enterprises, KSRTC topped the list with Rs 119.96 crore, followed by Kerala Water Authority (Rs 95.27 crore), Civil Supplies Corporation (Rs 75.50 crore), Keltron (Rs 52.44 crore) and the State Housing Board (Rs 50.18 crore).

The net worth was negative in 30 enterprises as on March 31, 2004. The net worth had fully eroded and become negative in the case of Kerala Electrical and Allied Engineering Company, Keltron Magnetics and Keltron Resistors during the year, while the net worth of Keltron Component Complex Ltd. became positive.

The highest negative net worth was recorded by KSRTC, followed by Civil Supplies Corporation, Keltron and the State Housing Board.

Besides, as many as 56 enterprises had carried forward losses amounting to Rs 4,665.42 crore, even as two PSUs had been able to fully wipe off the accumulated losses. Two others, which did not have carried-forward losses, reported loss during the year.

KSRTC had the maximum accumulated losses of Rs 1,262 crore, followed by KWA (Rs 1,008 crore), Civil Supplies Corporation (Rs 460 crore), Keltron (Rs 399 crore) and State Cashew Development Corporation (Rs 366 crore).

Significantly, only 10 enterprises declared dividend worth Rs 12.11 crore in 2003-04, with KMML declaring the maximum amount of Rs 6.19 crore. The others in the list included KSFE, Oil Palm India, Rehabilitation Plantations and Kerala Power Finance Corporation.

The review says, since June 2002, the Enterprises Reforms Committee had recommended reform measures for 45 PSUs and the Government had taken decision on 30 of them. About 4,609 employees had been given retirement compensation under the Social Safety Net Programme of the Government.

Apart from nine enterprises closed down in the past, six more are being wound up based on the committee's recommendations. Moreover, the Government had sought expressions of interest for taking over another six enterprises.

During the year under review, a total of Rs 84 crore had been spent for reforms in the PSUs, including co-operative units under the Industries Department.

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