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PSUs in State in bad shape: CAG report

PSUs in State in bad shape: CAG report

Thiruvananthapuram: The present condition of Kerala's 116 public sector undertakings (PSUs) is appalling with their investment eroding over the years due to sustained losses, says a report of India's government auditor.

The present net worth of the PSUs as per their latest finalised accounts is Rs.906.40 crore, said the report of the Comptroller and Auditor General of India on PSUs for fiscal 2011-12, laid on the table of the state assembly Monday.

The total investment in these PSUs was Rs.9,097.98 crore and the investment made by the state government was Rs.5,880.68 crore.

Speaking to reporters later, state Accountant General Biju Jacob said that out of these, 76 PSUs had finalised their accounts for the year ended March 2012. He said 49 PSUs earned a total profit of Rs.645.36 crore and 29 PSUs incurred a loss of Rs.477.88 crore.

These PSUs employ 1.25 lakh people.

On the audit done on the Kerala State Electricity Board, the report pointed out that though it showed a profit of Rs.240.71 crore in the last fiscal, its operations actually resulted in a loss of Rs.1,693.42 crore.

"Their balance sheet has been window-dressed and they do not have a long-term plan and a State Electricity Plan. Its transmission infrastructure was insufficient to meet the power needs of the northern part of the state. They also have poor safety regulations in place and none has any clue of the total electricity posts (made in concrete) that have been used after 4.1 million posts were ordered," said Jacob.

The report also brings out major lacunae in the manner in which the Kerala Financial Corporation and the Kerala Transport Development Finance Corporation has been extending financial assistance.

"Both these organisations have been giving loans against the guidelines. Now this report will be looked into by an assembly committee and responsibilities would be fixed on those who have erred," said Jacob.

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