Cumulative losses of PSUs at Rs 1,787 cr in three years

Inefficient management coupled with lack of professionalism and accountability of some state public sector undertakings (PSUs) of Orissa led to a cumulative loss of Rs 1787.23 crore in the last three years, according to the report of the Comptroller and Auditor General (CAG) for the year ended March 31, 2010.

During 2009-10, heavy losses were incurred by Idcol Kalinga Iron Works Ltd (Rs 39.61 crore), Orissa Power Transmission Corporation Ltd-OPTCL (Rs 18.3 crore) and Orissa Rural Housing & Development Corporation Ltd-ORHDC (Rs 5.45 crore).

“The losses are attributable to various deficiencies in the functioning of the PSUs.

A review of the audit reports of CAG shows that the losses of the state PSU s of Rs 1787.23 crore and infructuous investments of Rs 268.56 crore were controllable with better management”, says the latest CAG report. In 2009-10, 22 out of 35 working PSUs in the state earned profit of Rs 2241.30 crore and seven PSUs incurred losses of Rs 66.01 crore. The major contributors to profit were Orissa Mining Corporation-OMC (Rs 1890.22 crore), Orissa Power Generation Corporation-OPGC (Rs 126.25 crore) and Gridco Ltd (Rs 98.14 crore).

The report has pointed out that 27 working PSUs had arrears of 43 accounts by the end of September 2010 and has called for clearing of the arrears and outsourcing of the work relating to preparation of accounts.

Commenting on OPGC's performance, the report says that despite availability of all statutory clearances, common infrastructural facilities and surplus funds varying from Rs 142.26 crore to Rs 540.09 crore with the company, the 1320 MW expansion project could not come up due to non-finalization of modalities of sale of power and dispute over the existing power purchase agreement (PPA).

Consequently, the state had to purchase power from Central PSU s and other states at an extra cost of Rs 660.18 crore during 2005-10.

During 2009-10, even after purchase of power, average demand could not be met, leaving a deficit of 22 per cent of the total requirement.