State-run enterprises in Punjab recorded a significant deterioration in financial performance during FY 2022–23, posting aggregate losses of ₹4,809 crore, compared to a profit of ₹1,270 crore in the previous fiscal.
CAG Highlights Worsening PSU Performance
According to findings by the Comptroller and Auditor General of India, the state’s public sector undertakings (PSUs) reported total losses of ₹4,809.76 crore in FY23, marking a sharp reversal from the ₹1,269.90 crore profit recorded in FY22.
As of March 31, 2023, Punjab had 49 PSUs, comprising:
- 42 government companies
- 3 government-controlled entities
- 4 statutory corporations
These entities collectively generated a turnover of ₹73,542.33 crore, contributing approximately 10.92% to the state’s Gross State Domestic Product (GSDP).
Sectoral Pressures: Power and Agriculture
The report underscores declining contributions from key sectors:
- Power sector share in GSDP declined from 6.25% to 5.81%
- Agriculture sector contribution dropped from 7.75% to 4.94% over five years
Punjab State Power Corporation Limited (PSPCL) emerged as the primary contributor to losses, reporting a deficit of ₹4,775.93 crore. The losses were driven by increased expenditure on power procurement, fuel costs, and employee-related expenses.
Investment Profile of State PSUs
As of the end of FY23, total investment across 33 operational PSUs stood at ₹68,938.97 crore, structured as:
- 34.04% equity
- 65.96% long-term debt
During the year, the state government infused marginal equity capital into select entities, including:
- Punjab Scheduled Castes Land Development and Finance Corporation
- Punjab Rural Water Utility
Execution Gaps in Infrastructure Projects
The audit also flagged implementation delays in the Integrated Power Development Scheme (IPDS), aimed at strengthening power distribution infrastructure.
Out of 11,193 sanctioned metering cubicles, only 6,496 units had been installed as of February 2022, resulting in incomplete energy accounting and operational inefficiencies in distribution systems.
Summary
Punjab’s public sector undertakings witnessed a sharp financial downturn in FY23, shifting from profit to a ₹4,809 crore loss. The decline was largely driven by mounting losses in the power sector, particularly PSPCL, alongside reduced sectoral contributions and project execution delays. The findings highlight structural and operational challenges impacting the state’s PSU ecosystem.
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