According to Financial Express there are 56 Public Sector Enterprises which are classified as "sick" and have there net worth in negative.
In the Financial Year 2017-18 the net worth of these companies was negative of Rs.88,556/- crores.
Accumulated losses amounted to negative of Rs.1,32,360/- crores.
With a net worth of negative Rs.24,893 crores and accumulated losses of 53,914/- crores in 2017-18 Air India topped the list of loss making PSU companies.
This does not include the list of Public Sector Banks which have repeatedly suffered losses.
14 out of 19 Public Sector Banks have posted losses for 2 consecutive years. Losses of Public Sector Banks in FY 18-19 were Rs.74,277/- crores.
These are being payed by the taxpayer and the common man in one way or the other. Govt. has to fund (make up) these losses by either increasing taxes or borrowing more. Either way it is extra burden for the common man.
Hopefully the disinvestment by the Govt. will bring good news.
Do remember that when a loss making PSU is sold to Private Sector - generally the Govt retains some stake (less than 50%) - at least that has generally been the practice till now.
A turnaround in such a company helps the Govt. to rake in extra monies - by dividends and rise in share price. There are enough such examples in the past.
In the Financial Year 2017-18 the net worth of these companies was negative of Rs.88,556/- crores.
Accumulated losses amounted to negative of Rs.1,32,360/- crores.
With a net worth of negative Rs.24,893 crores and accumulated losses of 53,914/- crores in 2017-18 Air India topped the list of loss making PSU companies.
This does not include the list of Public Sector Banks which have repeatedly suffered losses.
14 out of 19 Public Sector Banks have posted losses for 2 consecutive years. Losses of Public Sector Banks in FY 18-19 were Rs.74,277/- crores.
These are being payed by the taxpayer and the common man in one way or the other. Govt. has to fund (make up) these losses by either increasing taxes or borrowing more. Either way it is extra burden for the common man.
Private Sectors Banks vs Public Sector Banks (Net Profits vs Net Losses)
Source : The Economic Times
Hopefully the disinvestment by the Govt. will bring good news.
Do remember that when a loss making PSU is sold to Private Sector - generally the Govt retains some stake (less than 50%) - at least that has generally been the practice till now.
A turnaround in such a company helps the Govt. to rake in extra monies - by dividends and rise in share price. There are enough such examples in the past.
