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| TN PSUs losses stood at Rs 3,498.90 cr |
| BS Reporter / Chennai Jul 23, 2009, 17:13 IST |
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The state-run 14 companies in Tamil Nadu accumulated losses stood at Rs 3,498.90 crore, exceeded their paid-up capital, according to Comptroller and Auditor General (CAG). According to CAG's report lack of modernisation, increase in the cost of production, pricing patter and competition had led the companies to report loss for the year 2007-08.
Shankar Narayan, principal accountant general, CAG said that 29 working PSUs (28 government companies and one statutory corporation) earned aggregate profit of Rs 206.32 crore. Seventeen working government companies and one statutory corporation incurred an aggregate loss of Rs 1,709.26 crore. Of the loss incurring working government companies, 14 companies had accumulated losses aggregating to Rs 3,498.90 crore, which exceeded their paid-up capital of Rs 1,116.96 crore.
Stating Tamil Nadu Cements Corporation as an example S Rajani , accountant general – commercial and receipt audit, CAG said that corporation had accumulated loss of Rs 45.86 crore as on March 2008, while the private cement manufacturers have reported profit.
Lack of modernisation, increase in cost of production due to high cost of mining, adoption of outdated wet process, excess consumption of clinkers, incorrect policy to fix up the price are some of the reasons for the corporation to report loss.
Other instance Tamil Nadu Mineral company’s export sales declined to Rs 6.72 crore from Rs 21.52 crore due to stiff competition from China .
Total investment in the working PSUs increased to Rs 19,485.27 crore as on March 31, 2008 from Rs 15,232.06 crore, a year ago. The investment in non-working PSUs dropped to Rs 85.38 crore from Rs 86.89 crore.
As on March 31, 2008 , the state had 70 PSUs comprising of 68 government companies and two statutory corporations, in addition there were six deemed government companies.
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