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Several of the state's 11 public sector
undertakings (PSUs) are functioning at a loss. Although the dividends and
interest received from government investment statutory corporations, government
companies and PSUs has increased over the years, the return from dividends and
interest as a ratio of total investment has fallen from 6 per cent in 1991-92 to
4 per cent in 1997-98. In 1993-94 and 1995-96 it was only one per cent.
In a recent study of PSU performance in Sikkim,
the Indian Institute of Cost and Management Studies and Research (INDSEARCH)
recommended the closure of four enterprises: Sikkim Mining Corporation, Sikkim
Industrial Development and Investment Corporation Ltd., State Bank of Sikkim,
and Sikkim Nationalised Transport. Sikkim Nationalised Transport, for example,
has made no profits since 1990-91 and its operating losses have been mounting.
Its total deficit (expenditure minus revenue) almost tripled between 1993-94 and
1995-96, from Rs 3.6 crore to Rs 9.6 crore, a fact which is reflected in the
rise in loss per kilometre from Rs 6.34 in 1993-94 to Rs 12.07 in 1995-96 (it
fell in l997-98 to Rs 9.33).
The financial results of these state companies
show that among the consumer enterprises only Sikkim Jewels Limited and Sikkim
Time Corporation made profits; Sikkim Flour Mills broke even in 1993-94 with an
accumulated loss of Rs 1.27 crore. SIDICO made profits of Rs. 2.44 crore in
1997-98; the Chanmari Workshop, Sikkim Mining Corporation and State Bank of
Sikkim incurred losses during 1994-95, 1995-96, and 1996-97, respectively, the
latest years for which their accounts have been finalised.
Sikkim does not have a state electricity board and
the Power Department does not maintain accounts on a commercial basis: there are
no annual reports, balance sheets, or profit and loss accounts. The accounts of
the department are rendered to the Accountant General of Sikkim. The gross
operating deficit of the Department has been rising steadily, from Rs 4.46 crore
in 1993-94 to Rs 10.07 crore in 1997-98, as revenue expenditures have increased
more rapidly than revenue receipts (including realisation of arrears). With the
recent creation of the Sikkim Power Development Corporation, keeping track of
profit and loss and loss accounts, etc., should become easier.
A comprehensive disinvestment plan is needed for
each of these enterprises, including the profit-making Sikkim Time Corporation,
which should be considered for privatisation. The rest, which are burdens on the
state exchequer, should be privatised or liquidated. |