HYDERABAD: The overall accumulated losses of the power sector public sector undertakings (PSUs) are Rs 28,436 crore, against the paid up capital of Rs 17,740.46 crore, resulting in a negative net worth of Rs 10,655.97 crore. The recent report of the Comptroller and Auditor General (CAG) on PSUs, which was tabled in the State Legislative Assembly, mentioned about the erosion of net worth of PSUs. The CAG also pointed out that 18 PSUs in the State were inactive.
Net worth means the sum total of the paid-up capital, free reserves and surplus, minus accumulated losses and deferred revenue expenditure. Essentially, it is a measure of what an entity is worth to the owners. A negative net worth indicates that the entire investment of the owners has been wiped out by accumulated losses and deferred revenue expenditure, the CAG report explained.
The total investment of the State and Central governments and others in these eight power sector PSUs at the end of the year 2018-19 was Rs 46,266.11 crore, consisting of equity of Rs 24,032.92 crore and subsidies/grants of Rs 22,233.19 crore.The present value (PV) of investments of the governments and others up to March 31, 2019 worked out to Rs 57,943.70 crore.