State PSUs continue to bleed

*    21 SPSUs lose Rs 484.87 cr

*    CAG blames mismagement

By Our Staff Reporter

Guwahati, March 2:  Twenty one of the 40 working state public sector undertakings (SPSUs) incurred a loss of Rs 484.87 crore, an audit report has said, noting that better magement could have minimized the loss substantially.

According to the report of the Comptroller and Auditor General of India for the year ended March 31, 2014, Assam Power Distribution Company Limited (APDCL) tops the list of loss-making PSUs, incurring losses to the tune of Rs 418.14 crore.

The audit was done during the year 2013-14.

The Assam State Transport Corporation incurred a loss of Rs 33.43 crore while the Assam Industrial Development Corporation Limited suffered a loss of Rs 7.46 crore.

As far as the APDCL is concerned, the CAG cited a number of irregularities in magement that led to the loss of revenue. Among these are — irregularities in magement of distribution franchisee agreements, wrong classification of consumers, non-recovery of pelty for over-drawal of power, abnormal delay in replacement of defective meters and incorrect billing. 

Delay in replacement of defective meters caused a revenue loss of Rs 47 lakh alone to the company.

The losses were attributed to various deficiencies observed in the functioning of SPSUs.

“A review of the three years audit reports of CAG shows that the PSUs incurred losses of Rs 258.65 crore and made infructuous investments of Rs 28.79 crore which were controllable with better magement. Thus, with better magement, losses can be minimized and profits enhanced substantially,” the audit report said, underlining that the PSUs can discharge their roles efficiently only if fincially self-reliant.

“There is a need for improving professiolism and accountability in the functioning of the PSUs,” the report said.