MVA GOVT EYES MONEY PUT IN LOSS-MAKING UNITS

Maha Vikas Aghadi (MVA) government, in order to mobilise funds for fulfilling poll promises and undertake new development projects, may revisit the investments made in the loss-making undertakings and decide its revival or closure. These undertakings are engaged in the manufacturing, infrastructure and services sectors.

As per the data with the Finance department, the state has invested a whopping Rs 1.40 lakh crore in statutory corporations, rural banks, joint-stock companies, and cooperatives as of March 31, 2018. The average return on this investment was 0.04% during 2013-18.

Nearly 32 public sector undertakings (PSUs) were incurring losses and their net accumulated losses amounted to Rs 49,192.54 crore. Of the 12 PSUs, the state government had infused funds in nine PSUs in the form of equity worth Rs 92,943.09 crore and long-term loans of Rs 321.81 crore.

Further, the net worth of 12 PSUs including the Maharashtra State

Textile Corporation (Rs 809.01 crore) and Maharashtra State Financial Corporation (Rs 625.26 crore) was eroded. The paid-up capital of the state government in these 12 PSUs was Rs 1,188.52 crore.

As far as 49 departmental commercial undertakings, no unit could earn a net profit for the accounts of 2017-18 while 33 departmental commercial undertakings had been incurring losses continuously for the last five years.

Finance Department officer told FPJ, "The government may spell out its plan of action in this regard in the status of economy paper likely to be announced by March. Already financial details of state undertakings as in March 2019 have been sought from the departments concerned."

Further, data from the Department of Cooperation revealed of the 5,006 societies with an aggregate public investment of Rs 323.04 crore, 2,710 societies had accumulated losses of Rs 220.11 crore as of March 31, 2018 which was 121% of the initial investments made in these societies. 1,021 societies were under liquidation.