Read to know how the anti-prosperity machine has kept on taxing Indian citizens for running sick and defunct businesses and in turn weakened ... PSUs
Remember last year when an Air India employee had suggested that they remove salad from meals offered in the economy class on international flights and reduce the number of in-flight magazines. Fewer magazines would mean a lighter plane that will burn less fuel so that the airline could survive.
Well, such misinformed thinking is exactly why the government should stay out of businesses. And it is not just Air India, there are many more public-sector undertakings that have been surviving on taxpayers’ hard-earned money since their inception.
Here is a list of top ten highest loss-making public-sector undertakings as per the Public Enterprises Survey for the financial year 2016-17
1. Bharat Sanchar Nigam Limited
The telecommunications company incurred 22.83 percent of the total losses suffered by Central Public-Sector Enterprises (CPSEs) in 2016-17. When there are successful private players like Bharti Airtel, Vodafone, Reliance Jio etc. to provide us unlimited calls and internet for ₹ 399, one must wonder why taxpayers need to be robbed annually in running this relic of our socialist past?
2. Air India Ltd.
The government bought 49 percent stake in Air India in 1948, and nationalised the carrier in 1953 and henceforth began the downfall of the Maharaja. So much so, that now it contributes 18.82 percent to the total losses suffered by the top ten loss-making CPSEs in 2016-2017. How about Tata group regaining the ownership of Air India?
3. Mahanagar Telephone Nigam Ltd.
The state-run telecom enterprise incurred 14 percent of the total losses suffered by the top ten loss-making CPSEs in 2016-17.
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4. Hindustan Photo Films Manufacturing Co Ltd.
The 4th biggest loss-making government undertaking which incurred 13.90% of the total losses suffered by the top ten loss-making CPSEs in 2016-17 is a manufacturer of photographic films, cine films, X-ray films, graphic arts films, photographic paper, etc. The company was declared sick by the Board for Industrial and Financial Reconstruction in 1996 and yet we continue to pay taxes for it. Why do we need photo films in the 21st century in the first place?
5. Steel Authority of India Ltd.
With the whopping loss of Rs 2,833 crore in the year 2017 SAIL traces its origin to the Hindustan Steel Limited (HSL) which was set up in 1954. Initially designed to manage only one plant at Rourkela, SAIL now operates and owns 5 integrated steel plants at Bhilai, Rourkela, Durgapur, Bokaro and Burnpur (Asansol) and 3 special steel plants at Salem, Durgapur and Bhadravathi. It also owns a Ferro Alloy plant at Chandrapur. Is it not the right time our government learns its lessons and instead of spreading its unprofitable ways just stops running businesses forever?
6. Rashtriya Ispat Nigam Ltd.
In November 2010, the company was granted the Navratna status. In September 2011, the government announced plans to divest 10% of its stake in the company via an initial public offering. It made losses of Rs 1263 crore in the fiscal year 2016-17. Can’t we do better with things we take pride in?
7. Western Coalfields Ltd.
India has the fifth largest coal reserves in the world and the government still finds ways to make losses in running a coal field? Western Coalfields Ltd. made for 3.70% of the total losses suffered by the top ten loss-making CPSEs in 2016-17.
8. STCL Ltd.
The defunct company still incurred losses worth Rs 563 Crores in FY 2016-17. Fortunately, you and I will not have to pay for it from this year onwards.
9. Brahmaputra Crackers & Polymer Ltd.
BCPL, the first ever petrochemical project in North East India. It made for 2.61% of the total losses suffered by the top ten loss-making CPSEs in 2016-17.
10. Air India Engineering Services Ltd.
Looks like everything is wrong with every company connected with Air India. Air India Engineering Services Ltd. Made losses of worth Rs 407 crores making it to the list of top 10 loss-incurring public sector undertakings at a time when civil aviation market in the country is witnessing double-digit growth annually.
