7 SPSEs in red, Gridco has highest negative net worth of Rs 4,135 crore

BHUBANESWAR: Even as the profit earned by 24 State public sector enterprises (SPSEs) has increased to Rs 1,686.08 crore in 2019-20 from Rs 1,174.30 crore by 22 government companies in 2018-19, net worth of seven has been completely eroded. The negative net worth of Grid Corporation of Odisha Limited (Gridco), the bulk power supplier to the State is the largest. With a negative net worth of Rs 4,134.8 crore, the company incurred a loss of Rs 281 crore in 2019-20.

The State government has paid up capital of Rs 576.71 crore to Gridco and the closing balance of guarantee by the end of 2019-20 was Rs 4,913.5 crore.“Outstanding guarantee commitments of the State government increased by 17.38 per cent from Rs 4,186.00 crore in 2018-19 to Rs 4,913.50 crore in 2019-20 as Gridco sought additional guarantee commitment to avail loans from banks/financial institutions,” said the performance audit report for the year ending March 2020.

The report further said that Gridco had not paid a guarantee commission of Rs 32.16 crore to the government during 2019-20. Of the 33 SPSEs under audit, 11 had accumulated losses of Rs 5,778.34 crore. Of the 11 companies, six incurred losses amounting to Rs 296.09 crore in 2019-20. Though five did not incur losses in the same fiscal, they had accumulated loss of Rs 785.45 crore.

“Net worth of seven out of 11 SPSEs had been completely eroded by accumulated loss and their net worth was negative. The negative net worth of these seven SPSEs was Rs 4,301.47 crore against a total equity investment of Rs 1,216.11 crore on March 31, 2020,” the audit said.

While the seven enterprises reported a total loss of Rs 304.52 crore, a loss of Rs 281.05 crore was contributed by Gridco alone. The net worth of Odisha State Road Transport Corporation (OSRTC) and Water Corporation of Odisha Limited was less than half of their paid-up capital during the same period indicating their potential financial sickness.

The overall, net worth of all the 33 government companies and corporations under audit was Rs 9,621.32 crore against their total paid-up capital of Rs 5,519.79 crore. The long-term loan outstanding of 10 SPSEs was Rs 13,182.57 crore from all sources out of which loan from the State government was Rs  1,277.29 crore.