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72 govt. companies saw loss of $19 Billion
By siliconindia
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Friday, 10 July 2009, 15:49 IST |
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94,428 crore) by the end of FY'08. The Comptroller and Auditor General of India said in its latest report that most of these companies are under the ministries for civil aviation, power, shipping, road transport, highways and consumer affairs.
The audit conducted for 281 companies out of 419 central government-run firms showed that the total losses of these companies were more than their equity value. The report stated, "Due to the negative net worth, recovery of the loans given by the government to these companies was also doubtful."
Of the companies, 185 earned profits, 72 accumulated losses and remaining 24 had not even started their commercial operations. Among the 185 profit-making companies, 117 PSUs declared dividend for 2007-08 amounting to 29,308 crore. Out of this 20,761 crore were paid/payable to the Government of India, representing 14.12 percent return on the total investments made by the government (i.e., 1,47,033 crore) in all Government companies and corporations.
The total profit earned by the 185 companies' amounts to 97,919 crore. Out of this, 74,446 crore was contributed by 48 companies from the petroleum, power, coal, steel and metal sectors.
The report also added, "Recovery of loans of 2,755 crore given by government companies to their 14 subsidiaries (included in the 72 companies the equity capital of which had fully eroded) has also became doubtful."