Meghalaya: CAG report reveals four state-run power sector companies running in losses
From 2016–17 to 2019–20, the overall losses of the SPSEs have increased by more than two folds, from ₹234.92 crore in 2016–17 to ₹478.54 crore in 2019–20.
The Comptroller and Auditor General of India (CAG) has revealed that the overall losses of the State Public Sector Enterprises (SPSEs) in the power sector are a drain on Meghalaya's economy and resources.
From 2016–17 to 2019–20, the overall losses of the SPSEs have increased by more than two folds, from ₹234.92 crore in 2016–17 to ₹478.54 crore in 2019–20.
In 2019–20, the net worth of one SPSE (MePDCL) was negative at (-) ₹934.25 crore owing to the complete erosion of its equity capital by the accumulated losses.
The net worth of MePDCL turned negative for the first time in 2016–17 when its paid-up capital (₹801.20 crore) was completely eroded by the accumulated losses (₹961.42 crore) as per its latest finalised accounts (2014–15) as of September 30, 2017.
From October 2017 to September 2020, MePDCL finalised three annual accounts (2015–16 to 2017–18). However, the net worth of the Company remained negative during all these years.
Despite constant deterioration in the overall performance of four power-sector SPSEs, the State Government continued to provide significant budgetary support to them, CAG reports.
The budgetary support aggregated to ₹430.04 crore for the four SPSEs from 2017–18 to 2019–20 by way of equity, loans, and grants/subsidy.
This included budgetary support of ₹157.09 crore provided to MePDCL alone during the above period.
TNT-The Northeast Today is now on WhatsApp: CLICK HERE to receive more updates on your phone
ALSO READ: MeECL inquiry: Mukul accuses MDA of tampering with process
