Chandigarh: The financial health of Punjab’s state-owned companies deteriorated sharply, with overall profits turning into heavy losses during 2022–23, according to a report by the Comptroller and Auditor General (CAG) of India on public sector undertakings (PSUs) in the state.The report, which reviewed the financial performance of govt companies and statutory corporations of Punjab govt for the period ending March 2023, showed that combined profits of working state PSUs slipped into losses of Rs 4,809.76 crore during 2022–23. These companies earned an overall profit of Rs 1,269.90 crore in 2021–22.As of March 31, 2023, Punjab had 49 PSUs, including five in power sector. These comprised 42 govt companies, three govt-controlled other companies, and four statutory corporations. Among govt companies, there were 16 inactive companies and 12 subsidiaries of govt companies.Together, the state PSUs recorded an annual turnover of Rs 73,542.33 crore, which accounted for 10.92% of Punjab’s gross state domestic product (GSDP) in 2022–23. However, the report pointed out that the growth of these PSUs remained sluggish. While state’s GSDP grew at a compounded annual rate of 7.05% over five years, the turnover of PSUs recorded a much lower compound annual growth rate of just 0.21% during the same period.The share of PSUs’ turnover in the state economy declined from 14.23% of GSDP in 2018–19 to 10.92% in 2022–23. The report also noted a fall in the contribution of both power sector and agriculture-related public enterprises. The share of power sector PSU turnover in GSDP declined from 6.25% to 5.81%, while that of agriculture and allied sector enterprises dropped from 7.75% to 4.94% over the five-year period.As of March 31, 2023, total investment in 33 working PSUs stood at Rs 68,938.97 crore, comprising 34.04% equity and 65.96% long-term loans. During 2022–23, the state govt infused Rs 2.05 crore as equity in Punjab Scheduled Castes Land Development and Finance Corporation and Rs 1 lakh in the newly formed Punjab Rural Water Utility.The number of profit-making enterprises also declined. Thirteen PSUs recorded profits in 2020-21, which dropped to 12 in 2021–22 and further to 11 in 2022–23. The total profit earned by these 11 enterprises fell sharply to Rs 319.97 crore in 2022–23, compared with Rs 1,710.77 crore by the 12 PSUs in the previous year.The report attributed the steep deterioration in overall performance largely to the financial position of Punjab State Power Corporation Limited (PSPCL). The utility reported a loss of Rs 4,775.93 crore in 2022–23, compared with a profit of Rs 1,069.21 crore in 2021–22, primarily due to a substantial increase in power purchase costs, fuel consumption costs, and employee benefit expenses.Overall, 18 PSUs incurred losses amounting to Rs 5,129.73 crore in 2022–23, compared with 17 PSUs reporting losses of Rs 440.87 crore in 2021–22.Despite some enterprises posting profits, dividend payments remained limited. Of the 11 PSUs that earned profits in 2022–23, only three declared dividends, paying a total of Rs 3.88 crore.The report also examined the implementation of integrated power development scheme (IPDS) in PSPCL. Introduced by the Union ministry of power in Dec 2014, the scheme aimed to strengthen sub-transmission and distribution networks and improve metering in urban areas.Audit findings highlighted delays and irregularities in implementation. Against 11,193 metering cubicles approved under the scheme, only 6,496 were installed by Feb 2022, due to delays of nearly two years in awarding the work and slow execution. As a result, energy accounting of all approved distribution transformers could not be achieved.The audit found that the company claimed a grant for 318 sites under a project worth Rs 10.61 crore for computer hardware and peripherals, although the work was executed at only 127 sites, leading to an irregular claim of Rs 3.82 crore.Additionally, the company claimed Rs 1.64 crore as a grant towards ‘software assurance’ fees, even though this constituted revenue expenditure that was required to be borne by the company under the scheme guidelines. The audit also pointed to delays in key technology projects. An ERP project sanctioned in Jan 2018 for human resource management, finance and accounts, and material management, saw the work order issued only in Aug 2019 for Rs 42.48 crore. As the project remained incomplete as of May 2024, the company could not avail a grant of Rs 4.37 crore.Similarly, a project for implementing a real-time data acquisition system, sanctioned in Dec 2018 at a cost of Rs 7.9 crore, could not be awarded due to delays in tendering. Consequently, the company could not avail a grant of Rs 4.74 crore, and real-time monitoring of the power distribution network remained unavailable.
