Analysis: Government companies running in 'losses' of thousands of crores, 'challenge' before government
Tuesday - August 28, 2018 5:01 pm ,
Category : WTN SPECIAL
The highest loss in 2016-17 by SAIL
AUG 28 (WTN) - CAG report on the condition of government companies will be 'startled'. According to information received from the media, the CAG report has revealed that due to uneconomically ongoing PSUs, the country has been 'drowning' thousands of crores of rupees. For your information, let you know that the country's government company’s losses have crossed the figure of 'one lakh crore'.
In the current Narendra Modi government, there is loss of '30 thousand crores' of PSU companies in every year. This report, presented in the monsoon session of parliament last days, show that due to ‘poor management’ the public venture has reached to be ‘closed'. For your information, let you know that companies having capital of 51 percent or more by the center or state are called 'public sector' ventures.
According to the information, 132 public sector undertakings in the year 2014-15 have net loss of Rs 30,861 crore in the respective year. Meanwhile, the accumulated loss of these companies has gone up to one lakh crore rupees, which is 1,08,051 crore. From this, in 2015-16, 153 enterprises suffered a net loss of 31,957 crores. As a result, the accumulated loss stood at 1,04,756 crores. Similarly, in 2016-17, net loss of 157 companies was 30,678 crore and the accumulated deficit was 1,04,730 crore.
For your information, let you know that ‘Net Loss’ means the loss in the relevant year and the ‘Accumulated Loss’ is the cumulative loss. The accumulated loss is calculated based on the performance of the companies in the previous governments from the current government.
The CAG has released a list of government companies that have lost more than a thousand crore. According to the list, the 'biggest losing' company in 2016-17 was Steel Authority of India (SAIL). SAIL had to suffer loss of Rs 3,187 in said year.
MTNL had lost Rs 2,941 crore, Hindustan Photo Films Company Limited 2,917, United India Insurance Company Limited 1,914 crore, Oriental Insurance Company Limited Rs 1,691 crore and Rashtriya Ispat Nigam Limited Rs 1,263 crore.
Now that the government companies are operating in such a ‘huge loss’, so a big question arises as to why the government should do 'disinvestment' in these companies. The government should encourage 'private ownership' to reduce losses of PSU. If the government does not pay attention to this, it is clear that their (PSU) losses will increase. If the deficit increases, the fiscal deficit will also increase which is a bad news for the government.
AUG 28 (WTN) - CAG report on the condition of government companies will be 'startled'. According to information received from the media, the CAG report has revealed that due to uneconomically ongoing PSUs, the country has been 'drowning' thousands of crores of rupees. For your information, let you know that the country's government company’s losses have crossed the figure of 'one lakh crore'.
In the current Narendra Modi government, there is loss of '30 thousand crores' of PSU companies in every year. This report, presented in the monsoon session of parliament last days, show that due to ‘poor management’ the public venture has reached to be ‘closed'. For your information, let you know that companies having capital of 51 percent or more by the center or state are called 'public sector' ventures.
According to the information, 132 public sector undertakings in the year 2014-15 have net loss of Rs 30,861 crore in the respective year. Meanwhile, the accumulated loss of these companies has gone up to one lakh crore rupees, which is 1,08,051 crore. From this, in 2015-16, 153 enterprises suffered a net loss of 31,957 crores. As a result, the accumulated loss stood at 1,04,756 crores. Similarly, in 2016-17, net loss of 157 companies was 30,678 crore and the accumulated deficit was 1,04,730 crore.
For your information, let you know that ‘Net Loss’ means the loss in the relevant year and the ‘Accumulated Loss’ is the cumulative loss. The accumulated loss is calculated based on the performance of the companies in the previous governments from the current government.
The CAG has released a list of government companies that have lost more than a thousand crore. According to the list, the 'biggest losing' company in 2016-17 was Steel Authority of India (SAIL). SAIL had to suffer loss of Rs 3,187 in said year.
MTNL had lost Rs 2,941 crore, Hindustan Photo Films Company Limited 2,917, United India Insurance Company Limited 1,914 crore, Oriental Insurance Company Limited Rs 1,691 crore and Rashtriya Ispat Nigam Limited Rs 1,263 crore.
Now that the government companies are operating in such a ‘huge loss’, so a big question arises as to why the government should do 'disinvestment' in these companies. The government should encourage 'private ownership' to reduce losses of PSU. If the government does not pay attention to this, it is clear that their (PSU) losses will increase. If the deficit increases, the fiscal deficit will also increase which is a bad news for the government.
