CAG report: ‘PSUs suffered loss of 352%’

The latest CAG report for the 2014-2015 financial year said that the loss incurred by working PSUs in Uttar Pradesh have increased by 351.82 per cent in a span of last four years.

By: Express News Service | Lucknow | Published:March 7, 2016 1:44 am

The latest report of the Comptroller and Auditor General of India for the 2014-2015 financial year said that the loss incurred by working PSUs in Uttar Pradesh have increased by 351.82 per cent in a span of last four years.

The report, which was tabled in the state Assembly on Sunday, mentioned that loss incurred by working PSUs have increased from Rs 3714.44 crore in 2010-11 to Rs 16782.71 crore in 2014-15, reflecting a deteriorating financial position of the public sector.

During 2014-15, of 65 working PSUs, 30 earned a profit of Rs 1,661.53 and 26 incurred a loss of 18,444.24 crore, the report stated. Six working PSUs had not submitted their first accounts whereas three of them prepared their accounts on a ‘no-profit-no-loss’ basis.

Share This Article
Share
Related Article

The major contributors to profit were UP Housing Board with Rs 495.11 crore, UP Power Transmission Corporation Limited with Rs 321.39 crore, UP Rajkiya Nirman Nigam Limited with profit of Rs 232.49 crore and UP Rajya Vidyut Utpadan Nigam Limited with Rs 218.08 crore.

The heavy losses were incurred by Dakshinanchal Vidyut Vitran Nigam Limited (Rs 5521 crore), Poorvanchal Vidyut Vitran Nigam Limited (Rs 4094.62 crore), Madhyanchal Vidyut Vitran Nigam Limited (Rs 3262.77 crore) and Pashmianchal Vidyut Vitran Nigam Limited (Rs 3171.51 crore).

The CAG report mentioned that Financial Restructuring Plan was not prepared by UP Power Corporation Limited and so the financial health of the power distribution companies deteriorated. Thus, the accumulated loss increased to Rs 60,101.98 crore as of 31 March 2014 as against Rs 33,600 crore as of 31 March 2012.

The CAG report also reported that UP State Bridge Corporation Limited had a cost overrun of 438.09 crore in 53 bridges from the 88 bridges checked. Funds worth Rs 360 crore-Rs 688 crore remained idle during 2009-10 to 2014-15 and 43 per cent-64 per cent of total number of units of the company were not financially viable due to inadequate turnover.

Another PSU, UP Housing Board, suffered a loss of Rs 3.12 crore on auction of a group housing plot due to incorrect fixation of reserved price.

For all the latest Cities News, download Indian Express App

  1. No Comments.