Massive Losses for Maharashtra PSUs: Over Rs 260 Crore Lost by MSRDC and Mumbai-Pune Expressway Management
Massive Losses for Maharashtra PSUs: Over Rs 260 Crore Lost by MSRDC and Mumbai-Pune Expressway Management
State PSUs report staggering losses in 2022-23, with significant financial strain on major transport and power entities.
The MSRDC Sea Link Ltd, responsible for managing the Bandra Worli Sea Link, and Mumbai Pune Expressway Ltd, are among the major public sector undertakings (PSUs) in Maharashtra that reported substantial losses exceeding Rs 260 crore for the fiscal year 2022-23. According to the Comptroller and Auditor General’s (CAG) audit report, these two entities, along with two others, contributed significantly to a total annual loss of Rs 3,623.4 crore among state PSUs.
The breakdown of the losses includes MSRDC Sea Link Ltd with a loss of Rs 297.6 crore.
Mumbai Pune Expressway Ltd with a loss of Rs 266.5 crore. Maharashtra State Road Transport Corporation (MSRTC) with Rs 1,146.5 crore.
Maharashtra State Power Generation Company Ltd with a staggering Rs 1,644.3 crore.
These figures are accurate up to September 30, 2023.
The CAG report evaluated the financial performance of 110 state PSUs for 2022-23. Among these, 47 PSUs reported profits totalling Rs 1,833.3 crore, while 45 incurred losses amounting to Rs 3,623.4 crore. The report highlights that 41 of these PSUs had accumulated losses totalling Rs 50,098.5 crore by March 31, 2023, with the highest losses in the power sector.
Notably, the net worth of 31 of the 41 PSUs with accumulated losses was completely eroded. This erosion indicates that the investments made by the owners have been entirely depleted by accumulated losses and deferred expenditures. The greatest net worth erosion was observed in MSRDC (Rs 2,948.1 crore), MSRTC (Rs 2,610.8 crore), Maharashtra Power Development Corporation Ltd (Rs 1,013.6 crore) and Maharashtra State Textile Corporation Ltd (Rs 1,006.7 crore).
As of March 31, 2023, the total long-term loans outstanding across 53 of the 110 PSUs amounted to Rs 1.4 lakh crore, reflecting an increase of ₹32,526.78 crore from the previous year. The report also noted that seven subsidiaries of the Marathwada Development Corporation Ltd (MDCL) remain inactive, despite government approval for their closure in October 2011. These inactive PSUs have investments totalling over Rs 1,699.4 crore. The report suggests that the government review these inactive PSUs to determine whether to revive or close them, as investments in inactive entities do not contribute to the state’s economic growth.
The total investment by the state in these 110 PSUs was Rs 2.3 lakh crore. This is primarily concentrated in agriculture and allied sectors, followed by the power sector. The highest government investment was in the MSEB Holding Company Ltd, amounting to Rs 89,216 crore as of March 2023.
