.jpg)
Caution from Government Corporations in Maharashtra: 43% loss; Underline the need for reform
Mumbai – Out of the total 110 corporations of Maharashtra government, 43 percent of the corporations are perpetually broke. This very situation testifies to the weakness of the government economic system, as the mega corporations known as 'Pandhra Hatti' are putting a huge burden on the state treasury. According to Loksatta.com, the last financial year or the harmful corporations have caused a total loss of Rs 5,000 crore, which has a negative impact on the development plans of the state. The problem is serious not only at the economic but also at the administrative and policy levels, which leads to criticism of the government from experts and opposition parties.
Maharashtra Government has a huge list of corporations in various sectors. There are big boats like Metropolitan Region Development Authority (MMRDA), Maharashtra State Road Development Corporation (MSRDC), Maharashtra State Electricity Corporation (MSEDCL). Only, there are 47 Mahamandalas out of a total of 110. This percentage is 43 percent, which has increased compared to previous years. In 2022-23, this percentage would have been 38 percent, and in 2021-22, it would have been 35 percent. Experts say that this increase in production is a matter of concern; inflation, increase in employee expenses and incomplete production sources are the main reasons.
Considering the amount of loss, the total loss last year has reached Rs 5,000 crore. The biggest losses have been incurred by institutions like Maharashtra State Agricultural Market Committee (APMC) and Maharashtra State Tourism Development Corporation (MTDC). For example, APMC has reported losses of Rs 800 crore, due to delay in market reforms and digitalization. Similarly, the losses of MTDC have reached Rs 500 crore, the reasons being the recession in the tourism sector after Covid and incomplete advertising. On the other hand, mega corporations like MSRDC are mere losers, earning a profit of Rs 1,000 crore. This shows that even though some areas may be successful, the overall system is weak.
Speaking on behalf of the government, Finance Minister Ajit Pawar told the Assembly, "The process of restructuring of corporations is underway. We are increasing private participation and reducing expenditure by using digital technology." Only the statements from the opposing parties are criticized for being incomplete. Shiv Sena (UBT) leader Sanjay Raut said, "Government's policies are over. Instead of restructuring the corporations, government officials are worsening the situation. Don't stop it, otherwise the economic condition of the state will worsen." Jayant Patil of the Nationalist Congress expressed a similar opinion, saying, "To have 43 per cent of Mahamandals is a disgrace to the government system. Independent audit and transparency are necessary."
Or the root cause of the problem is the increase in expenditure due to the lack of real time in the establishment of the mega corporation, the increasing number of employees (more than 2 lakhs) and old policies. Of the total government expenditure in Maharashtra, 20 per cent is on the Mahamandal scale, of which only 10 per cent is generated. According to experts, the characteristics of 'Pandhara Hatti' are - Although its beauty is beautiful, it is also a burden from the economic point of view. Industrialist Praveen Bhondve said, "The situation is unacceptable in a progressive state like Maharashtra. There is a need to expand the PPP model and close inefficient corporations."
In this background, the state government has appointed a committee last month to examine the financial health of the corporations. Or the report of the committee will be presented in two months, there is a possibility of improvement accordingly. However, due to political instability (Mahayuti government), there is doubt as to how effective this work will be. According to economists, if the steps are not taken immediately, there will be an additional burden of Rs 10,000 crore due to the deficit in the budget of 2025-26.
The problem is serious from the development point of view of Maharashtra. The state is the largest industrial center in India, which results in the weakness of government corporations. For example, due to MSEDCL's corruption, electricity supply is disrupted in rural areas, due to which the farmers are not settled. Similarly, metro projects in Mumbai are being funded by corporations like MMRDA. Experts suggest that the situation can be improved by giving autonomy to corporations and implementing business policies.
Overall, the 'Pandhra Hatti' condition of the government corporations in Maharashtra itself is a threat to the economic health of the state. The government should take concrete steps, otherwise the dream of development will not be able to come true. This matter will be a big issue in the upcoming session of the Legislative Assembly, says the government analyst. Transparency and accountability are necessary to stop wastage of citizens' tax money.
Mumbai – Out of the total 110 corporations of Maharashtra government, 43 percent of the corporations are perpetually broke. This very situation testifies to the weakness of the government economic system, as the mega corporations known as 'Pandhra Hatti' are putting a huge burden on the state treasury. According to Loksatta.com, the last financial year or the harmful corporations have caused a total loss of Rs 5,000 crore, which has a negative impact on the development plans of the state. The problem is serious not only at the economic but also at the administrative and policy levels, which leads to criticism of the government from experts and opposition parties.
Maharashtra Government has a huge list of corporations in various sectors. There are big boats like Metropolitan Region Development Authority (MMRDA), Maharashtra State Road Development Corporation (MSRDC), Maharashtra State Electricity Corporation (MSEDCL). Only, there are 47 Mahamandalas out of a total of 110. This percentage is 43 percent, which has increased compared to previous years. In 2022-23, this percentage would have been 38 percent, and in 2021-22, it would have been 35 percent. Experts say that this increase in production is a matter of concern; inflation, increase in employee expenses and incomplete production sources are the main reasons.
Considering the amount of loss, the total loss last year has reached Rs 5,000 crore. The biggest losses have been incurred by institutions like Maharashtra State Agricultural Market Committee (APMC) and Maharashtra State Tourism Development Corporation (MTDC). For example, APMC has reported losses of Rs 800 crore, due to delay in market reforms and digitalization. Similarly, the losses of MTDC have reached Rs 500 crore, the reasons being the recession in the tourism sector after Covid and incomplete advertising. On the other hand, mega corporations like MSRDC are mere losers, earning a profit of Rs 1,000 crore. This shows that even though some areas may be successful, the overall system is weak.
Speaking on behalf of the government, Finance Minister Ajit Pawar told the Assembly, "The process of restructuring of corporations is underway. We are increasing private participation and reducing expenditure by using digital technology." Only the statements from the opposing parties are criticized for being incomplete. Shiv Sena (UBT) leader Sanjay Raut said, "Government's policies are over. Instead of restructuring the corporations, government officials are worsening the situation. Don't stop it, otherwise the economic condition of the state will worsen." Jayant Patil of the Nationalist Congress expressed a similar opinion, saying, "To have 43 per cent of Mahamandals is a disgrace to the government system. Independent audit and transparency are necessary."
Or the root cause of the problem is the increase in expenditure due to the lack of real time in the establishment of the mega corporation, the increasing number of employees (more than 2 lakhs) and old policies. Of the total government expenditure in Maharashtra, 20 per cent is on the Mahamandal scale, of which only 10 per cent is generated. According to experts, the characteristics of 'Pandhara Hatti' are - Although its beauty is beautiful, it is also a burden from the economic point of view. Industrialist Praveen Bhondve said, "The situation is unacceptable in a progressive state like Maharashtra. There is a need to expand the PPP model and close inefficient corporations."
In this background, the state government has appointed a committee last month to examine the financial health of the corporations. Or the report of the committee will be presented in two months, there is a possibility of improvement accordingly. However, due to political instability (Mahayuti government), there is doubt as to how effective this work will be. According to economists, if the steps are not taken immediately, there will be an additional burden of Rs 10,000 crore due to the deficit in the budget of 2025-26.
The problem is serious from the development point of view of Maharashtra. The state is the largest industrial center in India, which results in the weakness of government corporations. For example, due to MSEDCL's corruption, electricity supply is disrupted in rural areas, due to which the farmers are not settled. Similarly, metro projects in Mumbai are being funded by corporations like MMRDA. Experts suggest that the situation can be improved by giving autonomy to corporations and implementing business policies.
Overall, the 'Pandhra Hatti' condition of the government corporations in Maharashtra itself is a threat to the economic health of the state. The government should take concrete steps, otherwise the dream of development will not be able to come true. This matter will be a big issue in the upcoming session of the Legislative Assembly, says the government analyst. Transparency and accountability are necessary to stop wastage of citizens' tax money.
Maharashtra Government has a huge list of corporations in various sectors. There are big boats like Metropolitan Region Development Authority (MMRDA), Maharashtra State Road Development Corporation (MSRDC), Maharashtra State Electricity Corporation (MSEDCL). Only, there are 47 Mahamandalas out of a total of 110. This percentage is 43 percent, which has increased compared to previous years. In 2022-23, this percentage would have been 38 percent, and in 2021-22, it would have been 35 percent. Experts say that this increase in production is a matter of concern; inflation, increase in employee expenses and incomplete production sources are the main reasons.
Considering the amount of loss, the total loss last year has reached Rs 5,000 crore. The biggest losses have been incurred by institutions like Maharashtra State Agricultural Market Committee (APMC) and Maharashtra State Tourism Development Corporation (MTDC). For example, APMC has reported losses of Rs 800 crore, due to delay in market reforms and digitalization. Similarly, the losses of MTDC have reached Rs 500 crore, the reasons being the recession in the tourism sector after Covid and incomplete advertising. On the other hand, mega corporations like MSRDC are mere losers, earning a profit of Rs 1,000 crore. This shows that even though some areas may be successful, the overall system is weak.
Speaking on behalf of the government, Finance Minister Ajit Pawar told the Assembly, "The process of restructuring of corporations is underway. We are increasing private participation and reducing expenditure by using digital technology." Only the statements from the opposing parties are criticized for being incomplete. Shiv Sena (UBT) leader Sanjay Raut said, "Government's policies are over. Instead of restructuring the corporations, government officials are worsening the situation. Don't stop it, otherwise the economic condition of the state will worsen." Jayant Patil of the Nationalist Congress expressed a similar opinion, saying, "To have 43 per cent of Mahamandals is a disgrace to the government system. Independent audit and transparency are necessary."
Or the root cause of the problem is the increase in expenditure due to the lack of real time in the establishment of the mega corporation, the increasing number of employees (more than 2 lakhs) and old policies. Of the total government expenditure in Maharashtra, 20 per cent is on the Mahamandal scale, of which only 10 per cent is generated. According to experts, the characteristics of 'Pandhara Hatti' are - Although its beauty is beautiful, it is also a burden from the economic point of view. Industrialist Praveen Bhondve said, "The situation is unacceptable in a progressive state like Maharashtra. There is a need to expand the PPP model and close inefficient corporations."
In this background, the state government has appointed a committee last month to examine the financial health of the corporations. Or the report of the committee will be presented in two months, there is a possibility of improvement accordingly. However, due to political instability (Mahayuti government), there is doubt as to how effective this work will be. According to economists, if the steps are not taken immediately, there will be an additional burden of Rs 10,000 crore due to the deficit in the budget of 2025-26.
The problem is serious from the development point of view of Maharashtra. The state is the largest industrial center in India, which results in the weakness of government corporations. For example, due to MSEDCL's corruption, electricity supply is disrupted in rural areas, due to which the farmers are not settled. Similarly, metro projects in Mumbai are being funded by corporations like MMRDA. Experts suggest that the situation can be improved by giving autonomy to corporations and implementing business policies.
Overall, the 'Pandhra Hatti' condition of the government corporations in Maharashtra itself is a threat to the economic health of the state. The government should take concrete steps, otherwise the dream of development will not be able to come true. This matter will be a big issue in the upcoming session of the Legislative Assembly, says the government analyst. Transparency and accountability are necessary to stop wastage of citizens' tax money.
