Only 4 out of 16 made profit in 2015-16 Most State PSUs in the red: CAG

SHILLONG: Many public sector units in the State have turned into loss-making units, a report of the Comptroller and Auditor General has pointed out.
The report said in 2015-16, out of 16 working State public sector undertakings, four earned profit of Rs 4.93 crore and 10 incurred loss of Rs 394.43 crore.
The main contributors to profits were Meghalaya Government Construction Company (Rs 2.96 crore) and Forest Development Corporation of Meghalaya Limited (Rs 0.61 crore).
Heavy losses were incurred by Meghalaya Power Distribution Corporation Limited (Rs 295.15 crore), Meghalaya Power Generation Corporation Limited (Rs 70.02 crore), Mawmluh Cherra Cements Limited (Rs 19.07 crore) and Meghalaya Transport Corporation (Rs 5.73 crore).
The report added that the overall losses of the working PSUs increased considerably from 2013-14 onward and peaked at Rs 389.50 crore mainly due to huge losses (Rs 366.55 crore) incurred by three power sector companies – Meghalaya Power Generation Corporation Ltd (70.02 crore), Meghalaya Power Distribution Corporation Ltd (Rs 295.15 crore) and Meghalaya Power Transmission Corporation Ltd (Rs 1.38 crore).
The report says contrary to the constant growth registered by the State GDP from 2011-2012 to 2015-2016 financial years, the turnover of the State PSUs has shown a decreasing trend up to 2013-14 and increased thereafter during subsequent two years.