In spite of nearly a decade long effort to revive the fortunes of public sector undertakings in West Bengal, the huge losses by them continue to strain the cash-strapped coffers of the state.
Recent report of the comptroller and auditor general (CAG) on West Bengal , points out, during 2010-11, out of 72 working PSUs, 30 PSUs earned a profit of Rs 550 crore, while 40 PSUs incurred a loss of Rs 812 crore.
In addition, the government contributed Rs 982 crore towards equity, loans and subsidies during 2010-11 in running of the PSU.
Moreover, a review of three years audit report of CAG shows, that state PSUs, losses to the tune of Rs 6,072 crore could have been controlled with better management, CAG pointed in its report.
The PSUs in West Bengal contribute about 5% to the turnover of GDP. The working PSUs in the state registered a turnover of Rs 23,319 crore for 2010-11.
It may be noted, in 2003 when the West Bengal government initiated public sector units (PSU) restructuring programme, it was believed that off loading government's stake in PSUs would deliver effective social welfare programme in the state along with rejuvenating some of the ailing public sector units. However, the government spent more time in appointing consultants, rather than releasing value from the PSUs and ploughing back the profits through achievement of its fiscal targets.
The consultants had identified 15 PSUs for revival through the joint venture route. However, only few found partners.
The process generated just a little more than Rs 60 crore, much less than the anticipated fund mobilisation of Rs 125 crore.
Of the Rs 60 crore, nearly Rs 52 crore came from 90% stake sale and the transfer of Kolkata’s Great Eastern Hotel to the Bharat Hotels group of the Suri family.
In May 2006, the government approved a Rs 1,700 crore package for restructuring 29-odd PSUs aided by funding from UK's department of international development (DFID) to lay off workers at these units and free the assets for sale.
The process that followed involved identification of unviable and viable PSUs and managing the bidding process for the transfer or sale of PSUs or their assets on case to case basis.
