In a sobering revelation inside the Assembly, the Jammu and Kashmir government on Tuesday disclosed that more than half of its Public Sector Undertakings (PSUs) are struggling, with 24 running in losses and four completely non-functional out of a total 44.
Responding in writing to a question raised by legislator Javaid Riyaz, Deputy Chief Minister Surinder Kumar Choudhary said the Union Territory currently has 10 profit-making PSUs, 24 loss-making PSUs, four non-functional units, two statutory corporations, and one dormant PSU.
He added that the government is actively examining ways to revive sick PSUs and improve their operational and financial performance, including reforms related to infrastructure and manpower.
Only 10 PSUs Are Making Profits
According to the official reply, the profit-making enterprises include:
- Jammu and Kashmir Bank
- J&K State Power Development Corporation Limited
- J&K Medical Supplies Corporation Limited
- J&K Cable Car Corporation Limited
- J&K Women’s Development Corporation
- J&K Police Housing Corporation
- Chenab Valley Power Projects Limited
- Ratle Hydroelectric Project Corporation Limited
- J&K Development Finance Corporation Limited
These units are currently supporting the UT’s revenue stream, while the rest remain under stress.
Major PSUs Bleeding Financially
The Assembly was informed that 24 PSUs are operating at a loss, including:
- J&K Handicrafts Sales and Export Corporation
- J&K Tourism Development Corporation
- Kashmir Power Distribution Corporation Limited
- Jammu Power Distribution Corporation Limited
- J&K Cements Limited
- Srinagar Smart City Limited
- Jammu Smart City Limited
Several others linked to industries, horticulture, transport, infrastructure, and small-scale development are also struggling to stay afloat.
Adding to the concern, both statutory corporations — J&K and Ladakh Finance Corporation and J&K State Road Transport Corporation — are also running in losses.
Four PSUs Shut, One Dormant
The government further revealed that multiple PSUs have become non-functional, including Overseas Employment Corporation and J&K Road Development Corporation, while J&K Asset Reconstruction Limited currently remains dormant.
Govt Assures Revival Strategy
Deputy CM Choudhary said administrative departments are working on a revival roadmap for loss-making PSUs, focusing on:
- Infrastructure upgrades
- Manpower rationalisation
- Financial restructuring
- Operational reforms
“The strengthening and revival of sick PSUs is under active consideration to improve their overall performance,” he told the House.
Public Sector Undertakings play a vital role in employment generation and economic stability in Jammu and Kashmir. With over half of them underperforming, economists warn that urgent reforms are critical to prevent deeper fiscal stress on the Union Territory.
