Scam Hit J&K PSUs Turn Into Liability For Govt

Srinagar: Most of the public sector undertakings (PSUs) are running in losses, which have become a huge burden on the state exchequer.

There are 19 public sector undertakings in the state under the administrative control of various departments.

According to official sources, most of the PSU (corporations) are unable to pay salaries to their employees. “Most of the corporations have reached at the verge of closure with authorities having facilitated scams instead of taking measures to revive them,” sources added.

They said, “Seven PSUs are being provided budgetary support by the state government to meet their wage bills as they failed to pay salaries to employees. The State Road Transport Corporation is also running into losses, which has become a liability on the state government. It has suffered over Rs 150 crore losses over the years.

Official figures reveal that SRTC has earned revenue of Rs. 98.29 crore during the year 2016-17. “The revenue part is continuously declining and even not able to pay salaries to employees,” an official said.

The Corporation had around 2000 vehicles including buses and trucks in 1900s whose number has reduced to around 1500.

J&K State Handloom Development Corporation was established in 1981 to assist handloom weavers’ societies and SSI units in the handloom sector. However, it has been continuously running into losses.

During 2013-2014, the Corporation witnessed around Rs 9 crore losses while the loss level increased to Rs 14 crore during 2016-2017.

Jammu and Kashmir Minerals Limited was incorporated in 1960 as the first public sector undertaking of the state. Since then, the corporation according to official figures had been incurring losses.

JK Cements Limited has also suffered heavy losses over the years. The JKCL was set up three-decades-ago of producing quality cements at the reasonable prices and generating revenue for the state. However, its production has gone down over the years and its employees are often protesting against non-releasing of salaries.

JK Forest Corporation, JK Industries Limited, JKWDC, J&K Horticulture Produce Marketing and Processing Corporation Limited, are also running in losses worth crores of rupees.