Investment in power sector 42.33 pc during 2008-09

Outlay in 23 PSU crosses Rs 4846.47 cr

BILAL HUSSAIN

The investment, capital and long-term loans, in twenty three Public Sector Undertakings (PSU) has reached Rs 4846.47 crore, as on March 31, 2009, the Comptroller and Auditor General (CAG) of India report ended March 2009 said.
The total investment in State PSUs, 99.93 per cent was in working PSUs and the remaining 0.07 per cent in non-working PSUs. This total investment consisted of 8.47 per cent towards capital and 91.53 per cent in long-term loans. The investment has grown by 61.87 per cent from Rs 2993.98 crore in 2004-05 to Rs 4846.47 crore in 2008-09.
Though the highest investment during 2008-09 was in power sector 42.33 per cent, the thrust of PSU investment was mainly in finance sector during the five years which has seen its percentage share rising from 6.74 per cent in 2004-05 to 26.58 per cent in 2008-09, the report mentions.
According to the experts here the rise in investments in the power sector is a good sign as the sector need more funds.
The budgetary outgo of the state government towards equity contribution, loans, grants and subsidy was all time high in preceding five years during 2005-06 at Rs 362.03 crore.
The downward trend of budgetary outgo can be seen after 2005-06, with marginal increase during 2008-09 when the budgetary outgo stood at Rs 74.99 crore, the report said.
At the end of March 31, 2009 guarantees amounting to Rs 2194.72 crore were outstanding. More than 93 per cent of these guarantees outstanding were on the loans raised by Jammu and Kashmir Power Development Corporation Limited from various Financial Institutions. However, the State Government has not charged any guarantee commission or fee from the PSUs during 2008-09.
Mention to be made the state PSUs earned a profit of Rs 232.25 crore in the aggregate as per their latest finalised accounts as of September 2009, the reports reveals. Experts here believe that the profit earned by the PSUs isn’t decent enough. According to them there are few PSUs only that earn good profits else rest are not earning much,” he said.
“They had employed 0.13 lakh employees as of March 31, 2009. The state PSUs don’t include two prominent Departmental Undertakings (DUs), which carry out commercial operations but are a part of government departments,” the report make a mention.
Of 23 PSUs in the state only one company is listed on the stock exchanges, Jammu and Kashmir Bank.