Close 33 non-working PSUs: CAG tells Bihar

The Comptroller and Auditor General (CAG) has recommended 33 non-working public sector units (PSUs) in Bihar be closed down in view of their increasing liability on the state government.

"The state government should take a decision regarding winding up of these corporations as no decision about their continuation or otherwise has been taken after they became non-working," the CAG report for the financial year ending March 2013 placed in the state assembly Tuesday said.

The report said there are 40 non-working PSUs in Bihar, of which seven are under liquidation process and 33 are almost defunct and a liability on the state government.

According to the CAG's report, lack of effective management and accountability has resulted in a colossal loss of Rs.2,495.44 crore from the 31 working PSUs in Bihar between 2010-11 and 2012-13.

"The loss was much higher at Rs.1,539.24 crore in 2010-11 followed by Rs.852.42 crore in 2011-12 and Rs.103.78 crore in 2012-13. These are test checks of records of the PSUs. The actual controllable loss could be much more," the report said.

Of the 31 working PSUs, only 15 earned profit of Rs.135.74 crore, while 10 incurred losses of Rs.1,222.18 crore. Of the remaining six PSUs, one has submitted its first account and five are yet to finalise their accounts.