When the government was going gaga after tabling the report of Public Sector Enterprises Survey in Parliament on February 10 that the ONGC, Indian Oil Corporation and NTPC were the top three profitable PSUs in 2018-19, what it conveniently overlooked was that even PSUs like BSNL, Air India and MTNL had been incurring highest losses for a third consecutive year.
It is not only the loss making PSUs but even several top level private sector companies are also in the red in most sectors like telecom, power, infrastructure, electric equipment, steel, aviation and even the startups are in huge losses.
However, the worst suffer is the telecom sector which is touted as second largest globally both in terms of fixed and mobile phone connections with more than 300 million mobile users. In telecom sector, Vodafone Idea is in a loss of 67,116 crores followed by Reliance Communications at 38,592 crores. The losses of Airtel stand at 26,838 crores, the BSNL at 14,904 crores and MTNL at 3589 crores. The Bharti Airtel on February 17, 2020 paid 10,000 crores to the Department of Telecom (DoT) as part of its pending adjusted gross revenue (AGR) dues. The Vodafone Idea and Tata Teleservices are also likely to make payment for their AGR dues. The overall dues to be received by the Department of Telecommunications (DoT) from the three companies sum up to 1.47 lakh crore. The Supreme Court is hearing the matter and had expressed displeasure over the issue. The Vodafone Idea is in the midst of calculating the amount that it needs to pay as AGR dues. This comes despite the company saying that the payment of AGR dues could lead to closure of its business in India.
In infrastructure sector, the GMR Infra had clocked a loss of 3610 crores, the Jaiprakash Associates is staring at a loss of 2,715 crores, IL&FS Engg Services at 2,042 crores, Unity Infra at 1,844 crores loss, Global Tele Sys at 1,600 crores and Jaypee Infratech at 1,582 crores.
In electric equipment sector, Jyoti Structures had a loss of 4,166 crores and Suzlon at 2,111 crores.
In power sector, Reliance Power was at the top among loss making companies registering a loss of 3,360 crores, followed by KSK Energy Ventures Limited at 2,893 crores, Jaiprakash Power Ventures Limited at 2,327 crores and Crompton Greaves at 1,966 crores loss.
In steel sector, Jindal Steel and Power had incurred a loss of 2,460 crores while Uttam Steels had a loss of 1,539 crores.
Amongst airlines, Air India was at the top in making losses and it was in a loss of 8,850 crores, followed by Jet Airways at a loss of 4,244 crores.
If we analyze the Public Enterprises Survey 2018-19, we find that the top 10 companies in the red claimed a whopping 94.04 per cent of the total losses made by all the 70 loss making CPSEs during the year.
The top three profit making PSUs including Oil and Natural Gas Corporation (ONGC), Indian Oil Corporation and NTPC contributed 15.3 per cent, 9.68 per cent and 6.73 per cent, respectively to the total profit earned by all profitable PSUs.
What is surprising is that the State Trading Corporation of India, MSTC and Chennai Petroleum Corporation which were profit making CPSEs in 2017-18, incurred losses in 2018-19 and also feature among the top ten loss- making firms, the survey found.
Total income of all CPSEs during 2018-19 stood at 24,40,748 crores compared to 20,32,001 crores in 2017-18, showing a growth of 20.12 per cent.
The contribution of CPSEs to the central exchequer by way of excise duty, customs duty, GST, corporate tax, interest on central government loans, dividend and other duties and taxes stood at 3,68,803 crores in 2018-19 as against 3,52,361 crores in 2017-18, showing an increase of 4.67 per cent.
As per the survey, there were total 348 CPSEs as on March 31, 2019 out of which 249 were operational. The remaining 86 were under construction and 13 were under closure or liquidation.
The Public Enterprises Survey -2018-19 tabled in both the Houses of Parliament on February 10 showed that the total paid up capital in all CPSES as on March 31, 2019 stood at 2,75,697 crores registering a growth of 8.55 per cent while the financial investment in all CPSES stood at 16,49,628 crores registering a growth of 14.65 per cent.
Capital employed in all CPSEs stood at 26,33,956 crore on 31.3.2019 compared to 23,57,913 crore as on 31.3.2018 showing a growth of 11.71 per cent. Total gross revenue from operation of all CPSEs during 2018-19 stood at 25,43,370 crore compared to 21,54,774 crore in the previous year showing a growth of 18.03 per cent. Total income of all CPSEs during 2018-19 stood at 24,40,748 crore compared to 20,32,001 crore in 2017-18, showing a growth of 20.12 per cent. Profit of 178-profit making CPSEs stood at 1,74,587 crores during 2018-19 compared to 1,55,931crore in 2017-18 showing a growth in profit by 11.96 per cent.
Reserves & Surplus of CPSEs stood at 9,93,328 crores as on 31.03.2019 as compared to 9,26,906 crores as on 31.03.2018, showing an increase by 7.17 per cent. the net worth of all CPSEs went from 11,15,552 crores as on 31.03.2018 to 12,08,758 crore as on 31.03.2019 showing an increase of 8.36 per cent.
Similarly, the contribution of CPSEs to Central Exchequer by way of excise duty, customs duty, GST, corporate tax, interest on Central Government loans, dividend and other duties and taxes stood at 3,68,803 crores in 2018-19 as against 3,52,361 crores in 2017-18, showing an increase of 4.67per cent. The foreign exchange earnings of 79 CPSEs through exports of goods and services stood at 1,43,377 crores in 2018-19 against 98,714 crores in 2017-18, showing an increase of 45.24 per cent.
Foreign exchange expenditure of 144 CPSEs on imports and royalty, know-how, consultancy, interest and other expenditure stood at 6,64,914 crores in 2018-19 against 5,22,256 crores in 2017-18 showing an increase of 27.32 per cent.
As per the Survey 2018-19, there were total 348 CPSEs as on March 31, 2019, out of which 249 were operational. Remaining 86 CPSEs were under construction and 13 CPSEs were under closure or liquidation.
What is striking highlight of the survey is that the loss of 70 loss making CPSEs stood at 31,635 crores in 2018-19 compared to 32,180 crores in 2017-18 showing decrease in losses by 1.69 per cent.
Performance of Central Public Sector Enterprises during the FY 2018-19
Overall net profit of 249 Operating CPSEs is 1,42,951 crore for FY 2018-19
178 Operating CPSEs posted net profit of 1,74,587 crore for FY 2018-19
70 Operating CPSEs posted net loss of 31,635 crore for FY 2018-19
Total Investment in 348 CPSEs stood at 16,40,628 crore as on 31.03.2019
Dividend declared/paid by CPSEs during the FY 2018-19 is 71,916 crore
Overall net profit of 258 operating CPSEs is 1,23,751 crore for FY 2017-18
183 Operating CPSEs posted net profit of 1,55,931 crore for FY 2017-18
72 Operating CPSEs posted net loss of 32,180 crore for FY 2017-18
Total Investment in 339 CPSEs stood at 14,31,008 crore as on 31.03.2018
Dividend declared/paid by CPSEs during the FY 2017-18 is 76,014 crore