The contribution of 30 working State public sector undertakings (SPSUs) of Telangana to the GSDP has declined from 8.36% in 2018-19 to 7.73% in 2019-20 to 6.76% in 2020-21, the Comptroller and Auditor General (CAG) report on the financial performance of SPSUs has found.
Further, the report tabled in the Assembly on Tuesday observed that the turnover of the 30 PSUs was 10.41% lower in 2020-21 compared to the previous year. Their turnover in 2020-21 was ₹66,316.99 crore against ₹74,021.19 crore in 2019-20. However, it has pointed out that COVID-19 pandemic could be attributed as one of the main reasons for the decline in their turnover.
Singareni Collieries Company Ltd, one of the major profit-making PSUs, bore the brunt of the pandemic as its revenue from coal operations was down by ₹5,921 crore in 2020-21 or a whopping 37% lower compared to the previous year “as a result of very poor demand for coal in the first half of the fiscal due to the pandemic”, the CAG report said.
Another PSU hit badly by the pandemic was TSRTC as it reported ₹1,603.78 crore less turnover in 2020-21 or 44.36% less compared to the previous year as its operations were stalled during the pandemic. The outstanding loans of the 30 PSUs increased to ₹98,929.43 crore as on March 31, 2021 from ₹78,640.20 crore as on March 31, 2020 or a phenomenal increase of ₹20,289.23 crore in a matter of just one year.
The CAG report explained that the increase in the PSUs’ borrowings during 2020-21 was mainly by Souther Power Distribution Company of Telangana Ltd (₹6,105.85 crore), Northern Power Distribution Company of Telangana Ltd (₹5,566.35 crore) and Telangana State Power Generation Corporation Ltd (₹2,757.39 crore) as they together borrowed ₹14,429.59 crore.
Although the power sector PSUs were being given sizeable subsidy/grant every year their financial position, particularly of the two Discoms, remains highly precarious with huge accumulated losses, the report observed. They were given subsidy of ₹5,661.39 crore in 2020-21, ₹4,750.17 crore in 2019-20 and ₹5,052.22 crore in 2018-19.
It has also noted that the government had also stood guarantee for availing ₹12,586.93 crore by the two Discoms as special long-term transition loan to inject liquidity under the special economic package of the Centre to overcome the pandemic impact.
