Seven working PSUs in state report Rs 998 cr loss

State-owned power trader, Gridco Ltd topped list of loss making PSUs with a loss of Rs 936.81 cr

Seven out of 37 working public sector undertakings (PSUs) in the state have incurred losses of Rs 998.39 crore during October, 2012 to September, 2013, according to the latest report of the Comptroller and Auditor General of India (CAG) on Public Sector Undertakings for the year ended March, 2013.

The state-owned power trader, Gridco Ltd topped the list of loss making PSUs  in 2011-12 with a loss of Rs 936.81 crore, followed by Odisha Rural Housing Development Corporation (Rs 31.71 crore) and IDCOL Kalinga Iron Works (Rs 27.54 crore). The auditors attributed the losses to various deficiencies in the functioning of the PSUs. A review of three years’ (2010-13) reflect losses of Rs 12,493.70 crore and infructuous investments of Rs 15.04 crore by state PSUs, the CAG stated.

Out of 37 working PSUs, 23 companies earned profit of Rs 1,888.39 crore in 2012-13. The major contributors to profit were Odisha Mining Corporation (Rs 1,383.46 crore), Odisha Power Generation Corporation (Rs 250.24 crore), Odisha State Beverages Corporation (Rs 72.32 crore) and Odisha Hydro Power Corporation (Rs 58.92 crore).

One working PSU namely Odisha State Civil Supplies Corporation has prepared its accounts on ‘no profit no loss’ basis while six companies have not started their operation or commercial production.

Working PSUs have registered a turnover of Rs 11,294.70 crore for 2012-13, equal to 4.37 per cent of State GDP (gross domestic product).

As on 31 March 2013, the investment (capital and long term loans) in 65 PSUs was Rs 10,471.51 crore. The investment rose by 26.69 per cent from Rs 8,265.25 crore in 2007-08. The increase in investment was mainly due to increase in capital and loan in power sector. The share of investment in power sector marginally increased from 76.55 per cent in 2007-08 to 81.18 per cent in 2012-13.

The CAG report has listed 28 PSUs as non-working, out of which 17 are under liquidation.

“Government may expedite closing down non-working PSUs for which closure/liquidation orders were already issued and for balance PSUs take appropriate action after exercising due diligence,” the CAG suggested.