Assembly committee raps Gujarat PSUs for causing huge losses

A Gujarat Assembly panel has expressed concern and dissatisfaction over the functioning of some PSUs and slammed them for causing financial losses.
In a report tabled in the House recently, the Public Enterprise Committee, which monitors state-run Public Sector Undertakings (PSUs), has pointed out several flaws in the functioning of Sardar Sarovar Narmada Nigam Ltd (SSNNL), Gujarat Industrial Development Corporation (GIDC) and Gujarat Urja Vikas Nigam Ltd (GUVNL).
The committee for 2014-15 has 13 members from both ruling BJP and opposition Congress. It headed by BJP MLA Narottam Patel. The committee for PSU scrutinises the observations made by the Comptroller and Auditor General (CAG) on these PSUs and suggests recommendations to the government.

In it's scrutiny report for SSNNL, which was based on the CAG reports for 2009-10 and subsequent explanations given by the PSU, the committee stated that SSNNL gave contract to Pune based Kirloskar Brothers Ltd (KBL) to set-up a plant and to install five pumping stations on Saurashtra branch canal during September 2001.
However, the report stated that due to the delay in completing the works in stipulated time, SSNNL paid Rs 55.68 crore more to the KBL. The committee observed that such overpayment could have been avoided.
"Due to negligence of SSNNL, the government was forced to pay more. The committee recommends changes in the payment methods to save the government in future. We also suggest the PSU to plan in advance," said the report.

The committee also slammed GUVNL for "failing to fulfil its responsibility" in setting up Kutch Lignite Thermal Power Station (KLTPS) in time.
In its report, the committee noted that GUVNL ended up paying Rs 370.20 crore more than the original budget due to the delay in setting up the power plant coupled with inappropriate estimates and faulty designs submitted by the consultant, which consumed significant time and money to rectify.