Asserting that Public Sector units (PSUs) as boards and corporations have a social responsibility, Himachal Pradesh Chief Minister Jai Ram Thakur said these can’t be viewed from a profit and loss angle and shut down to avoid losses to the government exchequer.
Replying to a query from BJP member Ramesh Dhwala during Question House on the fourth day of the ongoing budget session, Thakur said of the 23 PSUs, 11 corporations and 1 board are in the loss. But there was a significant improvement in their performance in the last three years.
“Though the suggestions to shut down the loss-making PSUs seems practical, the decision isn’t feasible as these have several important functions as ensuring the welfare of minorities and providing services to people.
HRTC is one such PSU that is running into losses but the government can’t shut it down as it provides transport services in rural and remote areas. Providing transportation to people is the responsibility of the state from which the government can’t back down.
Besides, there are several costs which need to be taken care of and we have to fulfil these responsibilities,” he added.
Thakur stated that the two years of the Covid pandemic proved quite tough for these PSUs and the state government had extended financial help so that they can continue to provide facilities to people.
The government had provided Rs 1,585 crore to HRTC, Rs 1,521 crore to HP State Electricity Board, and Rs 70 crore to HP Tourism Development Corporation, the CM said.
The CM stated that despite these constraints, efforts were being made to reduce expenditure and bring them into profit-making units. “Our efforts have resulted in Forest Corporation, HP Handicraft, and Handloom Corporation and HP Minorities Finance and Development Corporation,” he added.
Earlier, Ramesh Dhwala asked the state government whether it is planning to shut down loss-making PSUs which are estimated to be around Rs 400-500 crore, and 70 percent of them running into losses.