J&K earn Rs 232.25 cr profit

PSUs register Rs 3206.88 cr turnover for 2008-09

BILAL HUSSAIN

The state government managed a profit of Rs 232.25 crore in aggregate as per their latest finalised accounts as of September 2009 through the state Public Sector Undertakings (PSUs).
The PSUs consist of Jammu and Kashmir government companies and statutory corporations. The state PSUs registered a turnover of Rs 3206.88 crore for 2008-09 as per their latest finalized accounts as of September 2009. This turnover was equal to 9.21 per cent of state Gross Domestic Product (GDP) for 2008-09. Major activities of the PSUs are concentrated in power and finance sectors, the Comptroller and Auditor General (CAG) of India report ended March 2009 said.
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.
As on March 31, 2009, there were 23 PSUs. Of these, one company is listed on the stock exchanges, Jammu and Kashmir Bank.
During the year 2008-09, no PSU was established whereas three were under liquidation.
Audit of government companies is governed by Section 619 of the Companies Act, 1956. According to Section 617, a government company is one in which not less than 51 per cent of the paid up capital is held by government. A government company includes a subsidiary of a government company.
The PSUs are established to carry out activities of commercial nature while keeping in view the welfare of people. In Jammu and Kashmir, the PSUs occupy a moderate place in the state economy, CAG report mentions.