Mudasir Ahmad
Srinagar, Nov 12: The Jammu and Kashmir government has decided to conduct a thorough review of the functioning of various public sector undertakings (PSUs) in the Union territory, focusing on their financial health and performance.
The move comes as many of these corporations, initially established to generate revenue and create employment, have been incurring substantial losses for years.
A key aspect of the review process is assessing the corporations’ profit and loss statements.
According to an official document, the government has directed all corporations to submit comprehensive financial reports.
These reports should include details of profits and losses, expenditure statements, audit periods, utilization certificates, and updates on the latest board meetings.
Additionally, the corporations are expected to provide information on their budgets, revenue realization plans, and bank balances.
PSUs such as the Jammu and Kashmir State Road Transport Corporation (SRTC), Jammu and Kashmir Industrial Development Corporation (SIDCO), Jammu and Kashmir Forest Corporation, JK Industries Limited, J&K Horticulture Produce Marketing and Processing Corporation, Jammu and Kashmir Tourism Development Corporation (JKTDC), and J&K Minerals have been struggling with poor financial performance.
Several of these corporations have been shut down due to their inability to turn a profit.
The poor performance of some PSUs is attributed to multiple factors, including overstaffing, political interference, and a lack of professionalism and accountability.
Many of these organizations have also failed to pay salaries to their employees on time, leading to protests by workers who have repeatedly demanded the release of their dues.
Despite significant investments amounting to crores of rupees in these units, officials believe the lack of political will and mismanagement have led to continuous losses, totaling hundreds of crores.
Sources claim that although some PSUs own valuable assets spread across Jammu and Kashmir, these assets remain underutilized, further exacerbating the financial woes of the corporations.
The administration is now considering the possibility of privatization or outsourcing some of the loss-making PSUs as part of its broader strategy to reform these units.
Officials suggest that with proper management, there is potential to enhance the productivity and quality of products produced by these PSUs, which could help create new employment opportunities.
While some PSUs continue to operate without major losses, their profit margins have significantly declined in recent years. The government acknowledges the need for professional management to revitalize these corporations, improve their operations, and reduce the burden on public finances.
This review and potential restructuring of the PSUs in Jammu and Kashmir could pave the way for more efficient, sustainable businesses that contribute positively to the state’s economy and employment landscape.
