The Polarising Reality of Rajasthan’s State Corporations
Jaipur: The state is home to more than a dozen government corporations and companies, each with its unique situation and story. While some of these corporations are operating at a loss, others are thriving and generating profits. In certain places, employees are struggling to receive their salaries, while in others, lavish gifts are being distributed to staff on festive occasions like Diwali.
First, let’s focus on two corporations under Vidyut Bhawan. It is often assumed that companies and corporations dealing with electricity are loss-making entities that burden the government’s finances. However, Vidyut Prasaran Nigam, one of the key corporations at Vidyut Bhawan, has defied this notion by posting a profit of Rs 65 crore in the second quarter of the current financial year (2024- 25). According to the corporation’s chairman, Senior IAS officer Alok, the corporation’s total income during this period stood at Rs 1104 crore, with expenditures amounting to Rs 1039 crore. This resulted in an overall profit of Rs 234 crore across both quarters of the financial year.
Meanwhile, the Urja Vikas Nigam, also headed by Alok, has been spreading festive cheer by gifting attractive items to its employees this Diwali. The employees of this corporation have received luxurious Safari brand suitcases as Diwali gifts. While the employees are overjoyed by this gesture, staff at other corporations in Vidyut Bhawan are left waiting, hoping for similar festivities next year.
In stark contrast, Rajasthan Roadways is facing severe financial difficulties. Employees at the 60-year-old stateowned corporation are often forced to wait for up to two months to receive their salaries. Currently, the corporation is grappling with a loss of Rs 6,000 crore. The workforce, which once numbered 22,000, has now been reduced to just 10,800 employees. Additionally, the fleet of buses has shrunk from 4,000 to 2,600; and 1300 buses out of the remaining buses are in a dilapidated state. The procurement of new buses is caught in a bureaucratic bottleneck, with the files passing back and forth between the current chairman, Shubhra Singh, and Managing Director (MD) Purushottam Sharma. The appointment of a full-time, independent chairman has led to increased interference in day-to-day operations, with the chairman personally overseeing financial matters and decisions involving purchases worth more than Rs 25 crore. Meanwhile, MD Purushottam Sharma is unable to dedicate himself fully to Rajasthan Roadways, as he also holds the charge of JCTL. Reports suggest that a lack of coordination between the chairman and MD is contributing to the ongoing issues.
Once, the RSMM Corporation in Udaipur was one of the state’s leading government institutions, generating substantial revenue and contributing significantly to the state’s treasury. However, its fortunes have taken a dramatic turn. The income of the corporation, which once contributed crores to the state’s coffers, has now fallen by more than half. This decline is attributed to mismanagement in previous governments, which saw 12 MDs change hands in just four years. The constant instability in leadership, compounded by political interference, has led to the downfall of this once-proud corporation, which was once a symbol of excellence and financial strength in the state.
