Majority of PSUs in Rajasthan incurred loss during FY17: CAG report

Photo: Reuters

Jaipur: Almost every third public sector undertaking (PSU) in Rajasthan incurred losses during the year 2016-17, a CAG report said on Tuesday.

Out of 45 working PSUs, 16 undertakings incurred the loss of Rs 2,808.01 crore. Six PSUs had no profit or loss, stated the report which was tabled in the Rajasthan Assembly.

As per the Comptroller and Auditor General (CAG) report, 12 PSUs incorporated during 2006-07 to 2016-17 did not commence their business activities till 2016-17.

"The purpose behind incorporating these PSUs was therefore defeated and the government should take appropriate action with this regard," it said.

The CAG audit report for the year ended on March 31, 2016, also highlighted that 23 PSUs earned profit of Rs 1,193 crore and the top profit making companies were Rajasthan Rajya Vidyut Utpadan Nigam Limited (Rs 351.80 crore) and Rajasthan State Industrial Development and Investment Corporation Limited (Rs 349.58 crore) apart from others.

The capital investment and accumulated losses of the state PSUs as per their latest finalised accounts were Rs 41,465.19 crore and 1,01,241.75 crore respectively.

Analysis of investment and accumulated losses disclosed that net worth was eroded in 19 out of 48 PSUs.

"The quality of accounts of PSUs needs improvement. There were 30 instances of non-compliance with accounting standards by the PSUs," the report stated.

The CAG report recommended streamlining the process of assessment of requirement of material, finalisation of tenders with the prescribed time limit, strengthening inspection and testing procedures and conducting physical verification at specified intervals.