Shimla: Himachal Pradesh’s public sector undertakings (PSUs) continue to face significant financial struggles, with losses surpassing ₹4900 crore, as revealed in the Comptroller and Auditor General’s (CAG) report for the fiscal year 2022-23. The report, presented by Chief Minister Sukhvinder Singh Sukhu in the state legislative assembly, paints a concerning picture of the financial health of various state-run boards and corporations.
The report highlights that 12 major PSUs collectively accumulated losses amounting to ₹4901.51 crore. Leading the list is the Himachal Pradesh State Electricity Board Limited (HPSEBL), which alone accounts for a staggering deficit of ₹1809.61 crore. The Himachal Road Transport Corporation (HRTC) follows closely with losses of ₹1707.12 crore. Other key contributors to these financial setbacks include the Himachal Financial Corporation (₹180.97 crore), Himachal Pradesh Power Transmission Corporation (₹395.91 crore), and the State Forest Corporation (₹113.04 crore).
Smaller entities, such as the State Handicrafts and Handloom Corporation and the State Minority Finance and Development Corporation, also add to the burden, with losses of ₹12.42 crore and ₹5.72 crore, respectively.
Rising Financial Burden on the State Exchequer
The financial crisis in the state’s PSUs shows no sign of abating. The CAG report indicates that cumulative losses have grown from ₹518.60 crore in 2021-22 to ₹604.94 crore in the following year. Additionally, the state’s debt towards HPSEBL has increased to ₹3012 crore, while the Himachal Pradesh State Marketing Corporation (HPMC) faces a debt of ₹60.09 crore.
There were also concerns raised about discrepancies in financial reporting, including an instance where the State Electronics Corporation underreported employee benefit expenditures by ₹161.28 lakh, thereby inflating its profit figures. This misrepresentation reflects broader issues within the financial management of state-run enterprises.
The continued losses from these PSUs are putting immense pressure on the state’s economy, which is already grappling with a debt burden exceeding ₹75,000 crore. The mounting deficits are diverting valuable resources away from essential services such as infrastructure development, healthcare, and education, further limiting the state’s capacity to invest in its future.
Call for Reforms and Restructuring in State Enterprises
The financial troubles facing Himachal Pradesh’s PSUs are not a new development. Over the years, these enterprises have been criticized for inefficiencies, poor management, and failure to innovate. The Himachal Road Transport Corporation, for example, has long struggled with operational inefficiencies, while HPSEBL has faced challenges in managing rising input costs and revenue shortfalls.
In light of these persistent issues, the CAG has made several recommendations to address the crisis. These include implementing more effective financial management practices, restructuring underperforming entities, and considering public-private partnerships as a means to revitalize key sectors.
The report serves as a timely reminder of the urgent need for reform within the state’s public sector enterprises. Without decisive action, the financial losses could deepen, further straining Himachal Pradesh’s fiscal position and reducing its ability to fund essential development initiatives.