Seven working PSUs in Odisha record Rs 1,010 cr loss: CAG

Seven out of 36 working public sector undertakings (PSUs) in Odisha incurred losses of Rs 1,009.79 crore in 2011-12, says a latest report of the Comptroller & Auditor General of India (CAG) on PSUs for the year ended March 31, 2012.

Heavy losses were incurred by Gridco Ltd (Rs 936.81 crore), Odisha Rural Housing & Development Corporation-OHRDC (Rs 31.71 crore), IDCOL Kalinga Iron Works Ltd (Rs 27.03 crore) and Oidsha Power Transmission Corporation Ltd-OPTCL (Rs 12.73 crore).

CAG attributed the losses to various deficiencies in the functioning of the PSUs.

"A review of three years' audit reports of CAG shows that the state PSUs' losses of Rs 6,485.01 crore and infructuous investments of Rs 7.59 crore were controllable with better management. There is scope to improve the functioning and enhance profits. The PSUs can discharge their role efficiently only if they are financially self-reliant. There is a need for greater professionalism and accountability in the functioning of PSUs," the report pointed out.

However, 23 PSUs earned profits of Rs 2,305.81 crore in 2011-12. The major contributors to profit were Odisha Mining Corporation-OMC (Rs 1,880.59 crore), Odisha Power Generation Corporation-OPGC (Rs 206.29 crore), Odisha Hydro Power Corporation-OHPC (Rs 95.61 crore) and Odisha State Beverages Corporation- OSBC (Rs 40.02 crore).

The working PSUs registered a turnover of Rs 11,450.16 crore for 2011-12, the turnover being equal to 5.06 per cent of the state gross domestic products (GSDP).

As on March 31 2012, the investment (capital and long-term loans) in 64 PSUs was Rs 10,058.34 crore. The investment rose by 5.29 per cent from 9,553.38 crore in 2006-07. The increase in investment was mainly on the back of rise in capital and loan in the power sector.

The CAG report pointed out that there were 28 non-working PSUs (as on March 31, 2012). Of these, 17 were under liquidation process. The report of the Cental auditor emphasised on winding up of such PSUs as their continuance is a cost to the exchequer.