Shillong: Meghalaya has parked Rs 4,322.52 crore into 11 State Public Sector Enterprises through 2024-25. The money is largely sitting idle. The Comptroller and Auditor General of India reports that returns remain near zero. Only the Meghalaya State Warehousing Corporation paid back any cash: a measly Rs 0.06 crore.
The state is bleeding cash. It borrows money at an average interest rate of 5.31 per cent to fund these entities. By March 31, 2025, total government investment in companies, corporations, and cooperative bodies hit Rs 4,444.43 crore. This includes Rs 4,215.15 crore in government companies, Rs 107.37 crore in statutory corporations, and Rs 121.91 crore in banks and societies. Total dividends and interest returned a pathetic Rs 0.20 crore for the year.
The CAG audit highlights a systemic failure. Meghalaya lacks any dividend policy to force profitable firms to pay the state back. Three state PSUs turned a profit in 2023-24. None paid a dime in dividends. The CAG notes, "The audit’s concern is not simply whether individual PSUs booked a profit or a loss, but whether the capital committed to them earns an adequate economic return."
The portfolio is bloated and failing. Out of 22 total SPSEs, two are defunct with no hope of recovery. Investments climbed by Rs 467 crore in one year, yet returns barely budged from Rs 0.14 crore to Rs 0.20 crore. The government is essentially burning borrowed capital to keep dead or underperforming businesses afloat. Auditors now demand a total review. They want a hard look at closing, merging, or restructuring non-viable units while forcing profit-makers to pay up.
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