CAG says 20 J&K public sector enterprises reported combined losses of Rs 252.53 crore, while six government companies were inactive as of March 31, 2023.
JAMMU, (Economy India): The Comptroller and Auditor General of India (CAG) has flagged financial challenges among public sector enterprises (PSEs) in Jammu and Kashmir, noting that six of the 42 enterprises were inactive as of March 31, 2023, while 20 reported losses.
The findings are part of the CAG’s Report No. 3 of 2026 — Composite Audit Report (Civil and PSEs) for the Union Territory of Jammu and Kashmir, which was tabled in the J&K legislature on September 30, 2026.
Together, the six inactive enterprises and 20 loss-making entities account for 26 of the 42 PSEs under the CAG’s audit jurisdiction.
42 PSEs Under CAG Audit
According to the report, the 42 PSEs comprised:
- 39 government companies
- Two statutory corporations
- One government-controlled other company
Of the 39 government companies, six were inactive, including four that were under liquidation.
The CAG said the inactive companies had government and other investments of Rs 58.40 crore, comprising Rs 57.57 crore in capital and Rs 0.83 crore in long-term loans.
20 Enterprises Reported Losses
The audit report said 20 PSEs reported losses totalling Rs 252.53 crore. At the same time, 11 PSEs reported profits in their latest finalised accounts.
The combined profit of these 11 enterprises increased to Rs 1,286.79 crore in 2022-23, compared with Rs 566.10 crore in 2021-22.
The figures show that while some major public enterprises remained profitable, a substantial number continued to face financial difficulties.
Net Worth of 14 PSEs Completely Eroded
The CAG also highlighted that the accumulated losses had completely eroded the net worth of 14 PSEs.
The report includes entities such as the Jammu and Kashmir Agro Industries Development Corporation Ltd and the Jammu and Kashmir Horticulture Produce Marketing and Processing Corporation Ltd among enterprises whose net worth had turned negative.
The audit report recommended that the UT government analyse the reasons behind losses in enterprises where net worth has been eroded and take steps to improve their operational efficiency and profitability.
Power Sector Accounts for Major Share of Investment
The CAG report also noted the concentration of PSE investment in the power sector.
According to the report, power-sector enterprises accounted for 77.58 per cent, or Rs 29,879.63 crore, of the total PSE investment of Rs 38,516.67 crore.
This concentration reflects the significant role of government-owned enterprises in Jammu and Kashmir’s electricity and power infrastructure.
Accounts in Arrears
The audit also pointed to delays in finalising financial statements.
Of the 34 companies for which accounts for 2022-23 were due, only four submitted their accounts for CAG’s supplementary audit by September 30, 2023, leaving 30 companies with accounts in arrears.
The CAG advised the government to ensure that PSEs with outstanding accounts expedite the finalisation of their financial statements so that their operations remain subject to legislative oversight.
Key Findings
| Indicator | CAG finding |
|---|---|
| Total PSEs under audit jurisdiction | 42 |
| Government companies | 39 |
| Statutory corporations | 2 |
| Government-controlled other company | 1 |
| Inactive PSEs | 6 |
| PSEs reporting losses | 20 |
| PSEs with completely eroded net worth | 14 |
| Losses reported by 20 PSEs | Rs 252.53 crore |
| Profit reported by 11 PSEs | Rs 1,286.79 crore |
| Power-sector investment | Rs 29,879.63 crore |
| Share of total PSE investment in power | 77.58% |
CAG Calls for Corrective Action
The audit findings underline the contrasting financial performance of Jammu and Kashmir’s public enterprises: some reported substantial profits, while others remained inactive, loss-making or burdened by accumulated losses.
The CAG has called for analysis of the causes behind persistent losses and measures to improve the efficiency and financial sustainability of affected PSEs.
(Economy India)
