Odisha to liquidate defunct PSUs

As many as 76 firms are defunct in the state

Acting on a directive of the office of the Comptroller & Auditor General of India (CAG), the Odisha government has set in motion the task of liquidating defunct PSUs.

“Prompt action may kindly be initiated to liquidate the defunct companies/corporations under the administrative control of your department and the position of government investment in those companies may also be intimated to the office of the Accountant General (Odisha) with a copy to the finance department for incorporation of true and correct investment figure in the finance accounts”, A K Mishra, special secretary (finance) wrote to the secretaries of all departments.

The Finance accounts of the Odisha government for 2012-13 reflect investment accounts in respect of 140 entities, out of which 76 companies have become defunct and the investment figures of these entities have been rolling in. In a recent letter, the office of the AG had called for prompt action from the state administrative departments to liquidate the defunct companies/corporations to enable updating of finance accounts.

“It is the responsibility of the administrative departments to initiate action for liquidation of the defunct companies/corporations under their control and ascertain the actual status of investment. As the defunct companies/corporations are not liquidated, the true and correct position of the investment made by the government in these entities could not be determined”, Gargi Kaul, principal accountant general (Odisha) said in a letter to U N Behera, additional chief secretary (finance).

In the list of defunct PSUs are Odisha State Textile Corporation Ltd, Odisha State Electronics Ltd, Odisha Cement Ltd, Kalinga Industries Ltd, Konark TV Ltd and Kalinga Foundry Ltd to name a few.