May 29, 2017 12:30 AM NPT
KATHMANDU, May 29: Only four out of 39 public enterprises (PEs) provided cash dividends to the government in the last fiscal year 2015/16.
These public enterprises provided return of 5.6 percent of the government's total share investments in these enterprises.
According to the 'Annual Review of the PEs-2074' published by the Ministry of Finance and launched on Sunday, Industrial Districts Management Ltd (IDML), Nepal Doorsanchar Company Ltd (NDCL), Agricultural Development Bank Ltd (ADBL) and Nepal Stock Exchange Ltd (Nepse) distributed dividends to their shareholders in the last fiscal year.
While NDCL, popularly known as Nepal Telecom, and ADBL, have floated their shares to the general public, the government is sole owner of the IDML that provides infrastructure facilities like developed land fenced with boundary wall, industrial sheds and warehouses, for smooth operation of industries. The government has a majority stake in Nepse.
Nepal Telecom provided the highest dividend of Rs 6.86 billion to the government in the last fiscal year. While the government received Rs 915.8 million in cash dividend from ADBL, IDML provided Rs 4.2 million to the government. Nepse also gave cash dividend of Rs 29.3 million to the government in the last fiscal year.
The government received a total of Rs 7.81 billion in cash dividend from these three companies in the last fiscal year. It has made equity investment of a total of Rs 143.57 billion and loan investment of Rs 130.51 billion in these public enterprises as of last fiscal year, according to the data. Though the government had raised its investment in these PEs by 36.24 percent in the review period, the total return increased by only 11.33 percent, according to the report.
Net profit tumbles
Meanwhile, the cumulative net profit of 39 public enterprises has gone down to Rs 32.08 billion in the last fiscal year 2015/16 from Rs 33.92 billion in the previous fiscal year 2014/15.
According to the data, 12 public enterprises suffered net losses in the last fiscal year with Nepal Electricity Authority (NEA) topping the list with a net loss of Rs 8.9 billion.
While looking from the sector-wise break down of the PEs in terms of their net profit, trading sector observed the highest net profit in the review period. Trading sector alone earned Rs 19.25 billion in net profit in the last fiscal year. Nepal Oil Corporation, Nepal Food Corporation, The Timber Corporation of Nepal Ltd and National Trading Ltd, are some of the companies under the Trading sector.
Social sector PEs, however, were in net loss. Gorkhapatra Corporation, Nepal Television and Sanskritik Sansthan, are some of the public enterprises under social sector.