Should Himachal govt support businesses or sinking PSUs?

Vyapari Bachega to Pradesh Badhega
As Himachal Pradesh grapples with the financial strain of public sector undertakings (PSUs), The Newz Radar, the state’s first and only English digital news network, has launched a strategic initiative aimed at supporting the local trade and businesses and revitalising the hill state’s economy.

The initiative, “Vyapari Bachega, Tabhi Pradesh Badhega” (Himachal will progress only if the trader survives), aims to address the challenges faced by both the private and public sectors in the region.
According to a 2023 report by the Comptroller and Auditor General (CAG), the financial health of Himachal Pradesh’s public sector undertakings is deeply concerning.

The report highlighted that of the 23 PSUs in the state, 14 reported a cumulative loss of ₹5,143.46 crore for the fiscal year 2022-23. Among the most affected entities were the Himachal Road Transport Corporation (HRTC) and the Himachal Pradesh State Electricity Board (HPSEB), which posted losses of ₹1,966.13 crore and ₹1,823.97 crore, respectively.

In addition, the Himachal Pradesh Power Corporation Limited (HPPCL) recorded a loss of ₹689.24 crore, while the Himachal Pradesh Power Transmission Corporation incurred a ₹372.59 crore loss.

Some PSUs, however, have been able to generate profits, such as the Himachal Pradesh Industrial Development Corporation, which earned a profit of ₹108.44 crore, and the Ex-Servicemen Corporation, which gained ₹82.78 crore.

The Newz Radar’s focus on trade and policy reforms

In light of the growing challenges in the public sector, The Newz Radar is focusing on the private sector, particularly the struggling business community, to foster growth and economic recovery.

The campaign raises critical questions about whether government enterprises should continue to receive support or whether a more targeted approach should be adopted to aid the private businesses that are often the backbone of the state’s economy.

The initiative emphasises the importance of creating an environment where the business community can thrive, arguing that the survival and growth of small businesses directly impact the overall economic health of Himachal Pradesh.

S Gopal Puri