IN THE RED, SET FOR SALE

Punjab Communications Limited (Puncom) was established in 1981; promoted by state government through Punjab Information and Communication Technology Corporation Limited, with 100% equity. At present, the government holds 71.28% stake, amounting to Rs.8.57 crore. In 2017-18, Puncom suffered loss of Rs 3.81 crore, and accumulated losses (tentative) as on March 31 last stood at Rs 20.5 crore. Punjab Financial Corporation (PFC), incorporated under the State Financial Corporations Act, 1951, came into existence in 1953 with objective of granting loans for establishment of new micro, small and medium enterprises (MSME). State holds 72.57% stake in the corporation that was in profit till 1996-97. Due to highcost borrowings and stiff competition from commercial banks from 1998 onwards, the corporation moved into the red, according to the government. Accumulated losses as on December 30, 2017, were Rs 275 crore.

Punjab State Industrial Development Corporation (PSIDC), incorporated in 1966 for the development of large and medium scale industries, is a 100% state subsidiary. Its share capital was Rs 66.5 crore at time of incorporation, current is Rs 78.2 crore. Present liability of PSIDC towards bonds guaranteed by the state is Rs 601 crore, and interest due thereon till date is Rs 143 crore, thus total liability stands at Rs 744 crore.