HomeMumbaiMore than 40% of state-owned companies generate losses: 16th report of the...

More than 40% of state-owned companies generate losses: 16th report of the Finance Commission | Mumbai News

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2 minutes of readingBombayFebruary 4, 2026 12:16 am IST

Of the 101 state public sector enterprises (SPSEs) in Maharashtra, 45 are loss-making while nine have no profit or loss for the year 2022-23. According to the 16th report of the Finance Commission for 2026-2031, only 47 SPSEs in the state are making profits.

According to the report, infrastructure sector SPSEs lead the loss-making units, followed by energy and manufacturing. The infrastructure sector includes construction, urban development, etc., while the manufacturing sector includes chemicals, power looms and paper, etc.

Among the SPSEs generating the highest profits in Maharashtra are agriculture and allied, followed by financial and miscellaneous. Various comprises textbook publishing, governance/leadership institutes for backward populations, regional development corporations, etc., while the financial sector comprises finance, credit and investment corporations, financial services, etc.

The report states that as on March 31, 2023, there were 1,635 SPSEs in India. Government undertakings (GCs), in which the state government’s share in the paid-up capital is 51 per cent or more, account for the largest proportion of SPSEs. Of the total number, 1,414 SPSE (86.5 percent) are GCs. Among the SPSEs there are 135 government-controlled other companies (GCOCs) and 86 statutory corporations.

Commenting on the national picture, the report states: “Profit is a crucial indicator of a company’s financial sustainability. According to the latest available data, nearly 50 per cent of SPSEs (541 of 1,107 SPSEs for which profit/loss data is available) across states have losses or zero net profits. This statistic highlights the highly fragile financial condition of SPSEs.”

He added: “One of the main problems related to SPSEs is the large number of non-operational or inactive companies. While there are some differences in how SPSEs are classified as ‘inactive’ in the audit reports of various states, in general, inactive SPSEs can be described as those that have ceased operations.”

Alok Deshpande is a special correspondent with the Mumbai bureau of The Indian Express, recognized for his focused and authoritative reporting on governance, politics and socio-economic dynamics from hinterland Maharashtra. His unique academic background in geology and early work in the water sector provide a specialized layer of experience to his reporting on environmental and resource issues. Experience Current role: Special Correspondent, The Indian Express, Mumbai. Central Authority: Alok provides detailed coverage of the politics and governance of Maharashtra, with special emphasis on how politics and power struggles affect rural and semi-urban areas (the ‘hinterlands’). Key areas of coverage: Their reporting frequently focuses on high-stakes administrative and political issues, including: State Assembly Proceedings: In-depth reporting on the Legislative Assembly, covering ministerial statements, legislative debates and inter-party conflicts within the ruling Mahayuti alliance. Politics and Finance: Coverage of state finances, including supplementary budget demands, fiscal deficits and major government schemes (e.g. Jal Jeevan Mission, Ladki Bahin Yojana). Rural and social issues: Reports on critical health issues (e.g. child deaths in districts), human-animal conflicts (leopard attacks, stray dogs) and agrarian concerns (e.g. farmer suicides). Local and Urban Governance: Covers major announcements related to urban development (e.g. BMC’s OC amnesty plan, push for pagdi system) and local body elections, including political defections and alliance splits. Unique Credentials and Reliability Academic Specialization: Has a Postgraduate Degree in Geology. This experience gives you a fundamental understanding of natural resources, which directly influences your reporting on infrastructure, water and environmental projects. Early professional experience: Her shift to journalism came after working with an NGO focused on the water sector. This practical experience strengthens his expertise in critical areas such as water management and rural development, as demonstrated by his report on the Jal Jeevan Mission. Journalism Training: Alumnus of the prestigious Asian College of Journalism (ACJ), Chennai, confirming his formal training and commitment to rigorous journalistic standards. Alok Deshpande’s rare combination of academic education, experience in the non-profit sector and deep policy reporting makes him a highly trusted and authoritative voice on the governance and local realities of Maharashtra. He tweets @alokdesh …Read more

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