The Hindu : SLPEs continue to drain the exchequer

Online edition of India's National Newspaper
Thursday, Feb 12, 2004

Kerala

Kerala

SLPEs continue to drain the exchequer

By Our Special Correspondent

THIRUVANANTHAPURAM, FEB. 11. The year 2002-03 saw the State-level public enterprises (SLPEs) continuing their trend of draining the exchequer. The net losses run up by the units that were in operation during the year came to Rs. 219.93 crores, according to the latest review of their performance published by the Bureau of Public Enterprises.

During the year under review (2002-03), 34 enterprises earned profits to the tune of Rs. 279.26 crores, while 56 others reported losses totalling Rs. 498.48 crores. The previous year, the net losses of the SLPEs were Rs. 227.87 crores.

The top 10 profit-making enterprises in 2002-03 were: 1. Kerala Minerals and Metals Limited (Rs. 94.03 crores), 2. Kerala State Electricity Board (80.78 crores), 3. Kerala State Financial Enterprises (Rs. 38.07 crores), 4. Kerala Agro Machinery Corporation (Rs. 10.03 crores), 5. Kerala State Industrial Development Corporation (Rs. 9.14 crores), 6. Oil Palm India Limited (Rs. 8.94 crores), 7. Kerala State Beverages Corporation (Rs. 6.91 crores), 8. Rehabilitation Plantations (Rs. 5.78 crores), 9. Kerala Transport Development Finance Corporation (Rs. 3.69 crores) and 10. Kerala Power Finance Corporation (Rs. 2.82 crores).

(In the case of the Kerala State Electricity Board, however, the profit is shown merely to fulfil the statutory minimum return by taking into account the imaginary receipt of subsidy from the Government. No subsidy is actually received.)

The top 10 loss-making SLPEs include: 1. Kerala State Road Transport Corporation (Rs. 111.94 crores), 2. Kerala Water Authority (Rs. 83.62 crores), 3. Kerala State Housing Board (Rs. 66.46 crores), 4. Kerala State Electronics Development Corporation (Rs. 49.39 crores), 5. Kerala State Civil Supplies Corporation (Rs. 43.95 crores), 6. Kerala State Construction Corporation (Rs. 14.42 crores), 7. Kerala State Cashew Development Corporation (Rs. 14.27 crores), 8. Malabar Cements Limited (Rs. 11.50 crores), 9. Autocast Limited (Rs. 10.80 crores) and 10. Traco Cable Company (Rs. 8.62 crores).

The Malabar Cements is one company that had slipped from the cheerful side of the line to the depressing between 2001-02 and 2002-03. It had recorded a profit of Rs. 6.49 crores in 2001-02. The loss during the year under review came in spite of a capacity utilisation of 97.72 per cent as against 93.94 per cent the previous year. The main reason for the loss was a 10 per cent fall in turnover due to lower prices of cement and lower sales realisation.

Three more enterprises that had earned profits during 2001-02 incurred losses during the year under review. They are the Bakel Resorts Development Corporation, Kerala Hitech Industries and United Electrical Industries Limited.

On the other side, the Plantation Corporation of Kerala, Forest Industries (Travancore) Limited and the Kerala Industrial Infrastructure Development Corporation reported profits during the year under review, as against losses during the previous year.

Only 35 enterprises provided audited figures for to the Bureau of Public Enterprises for the review. While audit of accounts for 2002-03 is in progress in 25 enterprises, it is in arrears in the case of the remaining ones for periods ranging from two years to 13 years.

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