CAG seeks info on govt investments in PSUs

In addition, information on major heads under which investments have been made so far or likely to be made to be furnished

The office of the Comptroller & Auditor General of India (CAG) has sought information from the Odisha finance department on investments made by the state government in the shares of statutory corporations, government companies, joint stock companies and cooperative banks and societies.

Since the finance department makes the investment and tracks its results, the office of the Central auditor has asked it to provide up-to-date information for incorporation in the finance accounts of the Odisha government for 2012-13.

"It has been noticed in the past years that due to non-receipt of the required information or due to incomplete information from the concerned departments, the complete and latest position at the end of a particular year could not be incorporated in the stated publication”, read a letter from the office of the principal accountant general (Odisha) to finance secretary.

The department has to furnish information on areas like loss incurred or profit earned by each company up to the end of 2012-13, whether the company has gone into production or continuing production, whether the company has been liquidated, declaration of dividends credited to government accounts, purchase price and number of shares and cases of write-off or transfer of shares to any private entrepreneur.

In addition, information on major heads under which the investments have been made so far or are likely to be made are to be furnished.

The CAG in its report on state finances for the year ended March 31, 2012 pointed out that government investments on PSUs yielded lacklustre returns.

While the state government invested Rs 2908.07 crore during 2011-12, the return was Rs 286.23 crore, representing 9.84% of the total investments.

Of the total return of Rs 286.23 crore received from PSUs, state controlled miner-Odisha Mining Corporation (OMC) alone contributed Rs 285 crore.

The state government did not receive any return from 108 concerns which account for 84% of the total equity holding of the state government.

In essence, one statutory corporation, 77 government companies and 30 cooperative societies where Rs 130.51 crore, Rs 1990.60 crore and Rs 308.22 crore had already been invested did not return any dividend to the government.