BHUBANESWAR: At a time when the State Government is struggling to accelerate the pace of industrialisation through private investment, the poor financial health of a majority of the public sector companies are sending out a negative signal to prospective investors.
As many as 28 public sector undertakings have been closed down in the State due to mounting losses while 11 operating companies are running on losses.
The total capital investment in the State undertakings was Rs 1392.58 crore by way of equity and long-term loans. The Government has guaranteed the repayment of loan and interest.
While some of the closed units are under the process of liquidation, the PSUs running on perennial losses will face the same fate if timely action is not taken by the departments concerned for their revival.
In his replies to several queries on the current status of the State PSUs, Public Enterprise Minister Ashok Chandra Panda informed the Assembly on Saturday that the State had 64 PSUs out of which 28 companies have gone bust.
Of 36 operational PSUs, 11 companies are running on losses and 24 are making a profit. Odisha State Finance Corporation (OSFC) and Grid Corporation of Odisha Limited (Gridco) top the list of loss-making PSUs.
The bulk power trading utility Gridco with huge outstanding receivable of more than Rs 7,000 crore from the four power distribution companies is running with a loss of Rs 160.73 crore, while the Industrial Development Corporation of Odisha (IDCOL) has incurred a loss of Rs 70.83 crore.
However, three other units in the power sector - Odisha Power Generation Corporation, Odisha Hydro Power Corporation and Odisha Power Transmission Corporation Limited - are making profits.
The other loss-making PSUs are Odisha State Finance Corporation (Rs 471.55 crore), Kalinga Iron Works (Rs 162.82 crore), Konark Jute Limited (Rs 38.15 crore), Odisha Rural Housing Development Corporation Limited (Rs 576.47 crore till 2018-19), Kalinga Studio Limited (Rs 24.69 lakh), Odisha Fisheries Development Corporation (Rs 23.89 lakh), Odisha Warehousing Corporation (Rs 121.31 crore), Odisha Coal and Power Generation Corporation (Rs 280.94 lakh) and Water Corporation of Odisha (Rs 34.36 lakh up to March 31, 2019).
The heavy losses have been attributed to working capital shortage, overstaffing, low capacity utilisation, lack of order and mounting interest burden.
The Odisha Mining Corporation (OMC) with a profit of Rs 1259.59 crore continues to be the highest profit-making company of the State.
The other profit-making PSUs are Odisha Industrial Infrastructure Development Corporation, Odisha Industries Promotion and Investment Corporation Limited (IPICOL), Odisha Police Housing and Welfare Corporation, Odisha Small Industries Corporation, Odisha State Road Transport Corporation, Odisha Agro Industries Corporation.
The Odisha State Civil Supplies Corporation is running on “no loss and no profit” basis.