The condition of Kerala government companies is bad, will Congress hand over the government to private hands?

The financial condition of Kerala government companies is continuously deteriorating. A white paper presented by the state government in the Assembly has revealed that the state’s public sector units (PSEs) have been continuously incurring huge losses and have now become a huge burden on the state exchequer. The report says that the government needs to take serious decisions regarding the future of these companies.

According to the report, the total loss of government companies in the year 2021-22 was Rs 42,930 crore, which has increased to Rs 72,851 crore in 2024-25. This report was presented by Chief Minister VD Satheesan in the Assembly. For this, a three-member committee was formed under the chairmanship of former Cabinet Secretary KM Chandrashekhar, which conducted a detailed study of the financial position of the state.

Also read: RJD will take to the streets on June 9, will protest against inflation and unemployment

Major reforms recommended

The white paper suggests that the state government should consider restructuring of loss-making and non-essential companies. The report also says that in some cases options like privatization or closure can also be considered. However, it also makes it clear that in any reform process, complete protection of the interests of the employees must be ensured.

Electricity, transport and water supply sectors are the weakest.

The report said that the three major companies of the state, Kerala State Electricity Board (KSEB), Kerala State Road Transport Corporation (KSRTC) and Kerala Water Authority (KWA) are facing the biggest losses. These three institutions are bearing a major share of the total deficit of the state. Particularly worrying is the situation of KSRTC, which has recorded a loss of Rs 1,580 crore in 2024-25 and its net worth has become negative by about Rs 19,821 crore.

Also read: Bought a pair of bones for Rs 8,000, but when the rest of the money was not received, the doctor broke it again!

Biggest financial pressure on electricity board

The negative net worth of Kerala State Electricity Board Limited (KSEBL) has reached Rs 35,149 crore, the highest among any state entity. According to the report, purchasing expensive electricity from external sources is the main reason for its economic weakness. At the same time, the government remains heavily dependent on these companies as they pay low dividends and survive on constant budget support, grants and subsidies.

The report also revealed that KSRTC, KWA and KSEBL together hold about 69 percent of the total outstanding debt of the state government. Now after this report, the debate has intensified in the state whether major reforms will be made in these companies or steps will be taken towards handing them over to private hands.