Himachal Pradesh PSEs: A Tale of Mounting Losses and Vanishing Dividends

Himachal Pradesh's public sector enterprises have seen their losses swell from Rs 3,953.70 crore in 2020-21 to Rs 4,778.70 crore in 2022-23, as reported by the CAG. Nine out of 14 PSEs experienced net worth erosion, while profits from 13 others were insufficient for dividends.

The financial health of Himachal Pradesh's state public sector enterprises (PSEs) has deteriorated, with losses climbing from Rs 3,953.70 crore in the 2020-21 fiscal year to Rs 4,778.70 crore in 2022-23. The Comptroller and Auditor General (CAG) of India, in a report tabled in the state assembly, highlighted this troubling trend.

Among the 14 PSEs, nine have seen their net worth completely eroded, recording a negative worth of Rs 1,932 crore against an equity of Rs 2,085.59 crore. Moreover, three PSEs owe government loans totaling Rs 3,132 crore. Leading the loss-making entities is the Himachal Pradesh State Electricity Board with Rs 1,809.61 crore in accumulated losses, followed by the Himachal Pradesh Road Corporation at Rs 1,707.12 crore, and several others trailing behind.

While 13 PSEs managed to earn a combined profit of Rs 20.21 crore, insufficient earnings meant no dividends were declared. The report also criticized PSEs for delays in submitting financial statements, with 73 accounts of 27 PSEs in arrears.

(With inputs from agencies.)