Sikkim govt owned PSUs under hefty loss; 4 PSUs on verge of shutting down: CAP

CAP claimed that the accumulated losses of the state PSUs till 2019-20 total up to Rs 2266.62 crore

Coming down heavily on the Prem Singh Tamang-led Sikkim Krantikari Morcha government, the Citizen Action Party (CAP) said that the public sector undertakings (PSUs) under the state government are incurring hefty losses, and four PSUs are on the verge of shutting down.

CAP claimed that the accumulated losses of the state PSUs till 2019-20 summed up to Rs 2266.62 crore.

Addressing a press conference, CAP Chief Coordinator Ganesh Rai said, “The audit of these government companies is conducted by the Comptroller and Auditor General (CAG) of India. The audit report of PSUs, which has been published and presented at the Sikkim State Legislative Assembly, reveals that PSUs are not making a profit for the government but have incurred huge losses. Few PSUs have made negligible profits, but the overall performance of other PSUs is very worrisome. So far, accumulated losses till 2019-20 add up to Rs 2266.62 crore.

Mentioning that the government needs funds to carry out developmental activities in the state, he said, “PSUs have a larger role to play in making the financial position of a state better by making profit and creating employment. But contrary to this, major PSUs of the state are at a loss.”

CAP further said that four PSU’s, namely Sikkim Hatcheries Limited, Sikkim Livestock Processing and Development Corporation Limited, Sikkim Power Investment Corporation Limited, and Sikkim Power Development Corporation Limited, are on the verge of closing down as their accumulated losses are Rs 1119.52 crore, their paid-up capital stands at Rs 73.50 crore, and their capitals are totally eroded.

While six PSUs, namely Sikkim Flour Mills Limited, Sikkim Jewels Limited, Chandmari Workshop and Automobiles Limited, Sikkim Time Corporation, Sikkim Precision Industries Limited, and Sikkim Mining Corporation Limited, have closed down citing hefty losses, CAP said.

The above-mentioned figures are from the 17th finalized audit accounts for 2020–21.

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