16 Rajasthan PSUs incurred Rs 2.8k crore loss: CAGhttps://indianexpress.com/article/cities/jaipur/16-rajasthan-psus-incurred-rs-2-8k-crore-loss-cag/

16 Rajasthan PSUs incurred Rs 2.8k crore loss: CAG

During 2016-17, out of 45 working PSUs, 23 PSUs earned a profit of Rs 1,193.49 crore and 16 PSUs incurred a loss of Rs 2,808.01 crore.

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The report for the financial year ending March 31, 2017, deals with 48 PSUs consisting of 42 working companies, three working Statutory Corporations and three non-working PSUs, which employed around one lakh employees.

As per a Comptroller and Auditor General (CAG) report on Public Sector Undertakings (PSUs) in Rajasthan, tabled in the Assembly on Tuesday, as many as 16 out of 45 working PSUs incurred losses to the tune of Rs 2,808.01 crore in the financial year 2016-17, while as many as 12 PSUs, incorporated during 2006-07 and 2016-17, did not commence their business.

The report for the financial year ending March 31, 2017, deals with 48 PSUs consisting of 42 working companies, three working Statutory Corporations and three non-working PSUs, which employed around one lakh employees. The working PSUs registered a turnover of Rs 62,186.43 crore during 2016-17, which translates to 8.29 per cent of the State Gross Domestic Product.

During 2016-17, out of 45 working PSUs, 23 PSUs earned a profit of Rs 1,193.49 crore and 16 PSUs incurred a loss of Rs 2,808.01 crore. Six PSUs had no profit or loss for the year 2016-17. Thus, working PSUs registered overall losses of Rs 1,614.52 crore; however, this is a major improvement upon the losses incurred during 2015-16: Rs 12,373 crore.

Further, out of 45 PSUs, 12 PSUs incorporated during 2006-07 to 2016-17 did not commence their business activities. “The purpose of incorporation of these PSUs was, therefore, defeated. The government should take appropriate action with regard to these PSUs,” the report noted.

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Power sector continued to bleed the state. Heavy losses were incurred by Jodhpur Vidyut Vitran Nigam Limited (Rs 1,028.68 crore), Jaipur Vidyut Vitran Nigam Limited (Rs 615.75 crore), and Ajmer Vidyut Vitran Nigam Limited (Rs 336.69 crore), topping the three worst performers. They are followed by Rajasthan State Road Transport Corporation (Rs 492.41 crore) and Giral Lignite Power Limited (Rs 235.97 crore). The accumulated losses of state PSUs stand at Rs 1.01 lakh crore, the report says. Analysis of investment and accumulated losses disclosed that net worth was eroded in 19 out of 48 PSUs, which were mainly power sector companies. The accumulated losses of these 19 PSUs were Rs 99,077.80 crore.

The report’s Compliance Audit Observations highlight deficiencies in management of PSUs, “which resulted in serious financial implications.” For example, “loss/extra expenditure/non-recovery/opportunity to earn revenue of Rs 100.79 crore was due to non-compliance with rules, directives, procedures, terms and conditions of contract in six cases,” it said.

Meanwhile, the PTI reported that the state government said that there was a need to amend the existing norms to bring ‘hookah’ bars within the ambit of laws similar to those applicable on cigarettes and ‘bidi’. During the Question Hour in the Assembly, Home Minister Gulab Chand Kataria said it was a matter of grave concern that younger generation was getting into addiction through hookah bars.