Closure orders of these companies were issued five to 22 years ago but none of them were finally wound up. Two of them are in the liquidation process though, stated the CAG report tabled in the state legislature last week.
Cash strapped Maharashtra government is spending Rs 60 crore every year towards establishment expenses of nine defunct public sector units (PSUs) shut down years ago, latest report of Comptroller and Auditor General of India (CAG) has revealed. Total loss to the exchequer could be much more as the state has total 22 non-functional PSUs with investment of approximately Rs 940 crores at the end of March 2016.
Closure orders of these companies were issued five to 22 years ago but none of them were finally wound up. Two of them are in the liquidation process though, stated the CAG report tabled in the state legislature last week.
Ironically, most of these government companies were established during 60s-70s in the underdeveloped Vidarbha and Marathwada regions of the state. The primary objective to set-up such ventures under the government-set up was to boost agriculture and allied sectors, manufacturing and infrastructure development in the areas with developmental backlog.
Despite hefty investment, these companies failed and eventually closed down. "Reasons range from administrative failure to corruption and huge political interventions," said a bureaucrat. For instance, Development Corporation of Vidarbha Ltd (DVCL) was among four corporations formed by the Maharashtra government in 1970s. Two of them were declared sick within 20 year. At one time, DVCL supported more than 3,000 weaver families in Bhandara, Chandrapur and Gadchiroli districts.
In its initial days, the DVCL was headed by illustrious industrialists such as Naval Tata and Ramkrishna Bajaj.
The CAG has said,"The process of voluntary winding up under the Companies Act is much faster and needs to be pursued vigorously." Government officials claim some of these sick units are being revived.
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