The Comptroller and Auditor General (CAG) has recommended expediting the closure of 22 non-working public sector undertakings (PSUs) of Punjab.
Of the total, 15 non-working PSUs are under various stages of winding up process while decision on the remaining was yet to be taken. The report also pointed out that working PSUs incurred huge losses in 2011-12 due to deficiencies in financial management, planning, implementation of project, running their operations and monitoring.
The CAG report suggested the state government might take a decision regarding winding up of the remaining seven non-working PSUs where no decision about their continuation or otherwise has been taken after they became defunct.
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According to the report, the non-working PSUs are required to be shut down as their existence is not going to serve any purpose. During 2011-12, 12 non-working PSUs incurred an expenditure of Rs 65 lakh towards salary and establishment expenditure, etc. This expenditure was financed through other resources viz. borrowings from common pool fund of PSUs under liquidation, interest on investigations etc.
The report which was tablet in state assembly also pointed out that the working public sector undertakings (PSUs) of Punjab incurred heavy losses during the financial year 2011-12. The auditor's report states that during the year 2011-12, out of 31 working PSUs, 14 PSUs earned a profit of Rs 58.67 crore and 12 PSUs incurred loss of Rs 1568.83 crore. Further, three PSUs prepared their accounts on 'no profit no loss' basis while two working PSUs have not started commercial activities.
The heavy losses were incurred by Punjab State Electricity Board (Rs 1301.52 crore), Punjab State Warehousing Corporation (Rs 122.28 crore) and Punjab state Grains Procurement Corporation Ltd (Rs 85.60 crore). The losses of working PSUs are mainly attributable to deficiencies in financial management, planning, implementation of project, running their operations and monitoring.
The latest audit reports of CAG points out that losses to the tune of Rs 737.93 crore and infructuous investment of Rs 6.27 crore, which could be controlled with better management.
The major contributors to the profit were Punjab State Container and Warehousing Corporation Ltd (Rs 11.40 crore), Punjab Genco Ltd(Rs. 11.15 crore) and Punjab Information and Communication Technology Ltd(Rs. 11.06 crore).
The CAG report suggest that the PSUs can discharge their role efficiently only if they were financially self-reliant. It also stressed the need for professionalism and accountability in the functioning of PSUs.
Further, as per the report, as on March 31, 2012, the state had 31 working PSUs (27 companies and four statutory corporations) and 22 non-working PSUs (all companies), employing about 0.65 lakh employees. The working PSUs registered a turnover of Rs 29,841.98 crore for 2011-12 as per their latest finalized accounts. This turnover was equal to 112.02 per cent of the state gross domestic product, indicating an important role played by the state PSUs in the economy. However, the working PSUs incurred overall loss of Rs. 1510.16 crore in 2011-12 and had accumulated loss of Rs. 12,180.76 crore.
