Staff Reporter
GUWAHATI: A section of public sector enterprises (PSEs) of Assam have been incurring huge losses, besides not filing their annual returns for years on end.
According to the CAG report for the year 2024, the accumulated loss of 16 PSEs in the state amounts to Rs 2,392 crore. Assam State Transport Corporation (ASTC) incurred the highest loss, amounting to Rs 1,772 crore. Among the others, while Assam Tea Corporation (ATC) incurred an accumulated loss of Rs 303 crore, Assam Financial Corporation (AFC) incurred a loss of Rs 32.68 crore, Rs 40 crore by Assam Plain Tribe Development Corporation (APTDC), Rs 17.63 crore by Assam Small Industries Development Corporation Ltd (ASIDCL), Rs 12.22 crore by Assam Seed Corporation Ltd (ASCL), Rs 6.92 crore by Assam Police Housing Corporation Ltd (APHCL), etc.
The report said, "It was seen that the net worth of 14 of the 16 loss-making PSEs continues to be negative for more than ten years. The gradual increase in losses of these PSEs over the years poses a long-term burden on the state economy and resources. The government needs to review the working of these PSEs to either improve their profitability or consider closing their operation, where revival is not feasible. The government may also review the staff recruitment of these PSEs to rationalise manpower and bring their establishment cost to a sustainable level. The government may also explore the possibility of merging select PSEs into one or two entities with clearly defined business verticals to streamline operation and exceed economies of scale."
The report further said, "Five out of the 16 PSEs, whose turnovers were less than employees' expenses, are dependent on other income or budgetary support to make their salary-related expenses. It was also seen that none of the 16 working PSEs mentioned above whose accumulated losses completely eroded their equity capital had adequate resources to exceed the envisaged objectives. This led to dependency of these PSEs on the state government for financial support not only to undertake their mandated objectives but also to meet their employees' expenses."
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