Most of the PSUs in Chhattisgarh are in very bad shape: CAG report

The Chhattisgarh government has invested Rs 7,447.77 crore in state-owned public sector undertakings (PSUs) but failed to get even a per cent of return.

The audit report of the Comptroller and Auditor General of India (CAG) on the state’s finances for the year ended March 31, 2023, was tabled in the state Assembly.

The report revealed that most of the PSUs in the state are in a very bad shape.

The Government of Chhattisgarh had invested Rs 7,447.77 crore in 10 statutory corporations, 28 government companies, 21 joint stock companies, two rural banks and 1,460 co-operative institutions in the state as of March, 31, 2023.

 

“During 2022-23, the return on investment was Rs 6.20 crore (0.08 per cent),” the audit watchdog said in the report. However, the government paid interest on its borrowing at an average rate of 6.91 per cent during the same period.

As on March 31, 2023, the total investment in 28 state PSUs comprised 33.79 per cent of equity capital and 66.21 per cent of long-term loans.

The long-term loans in 28 state PSUs comprised Rs 977.03 crore advanced by the central and state governments and Rs 12,900.87 crore raised from other sources.

The losses incurred by the PSUs increased to Rs 1,143.10 crore from Rs 433.14 crore in 2020-21.

As against the equity (paid-up capital plus defaulted loans) of Rs 2,972.81 crore of seven loss-making PSUs, overall net accumulated losses reported by these PSUs were 10,034.72 crore.

This resulted in depletion in net worth of the PSUs to (-) 7,061.91 crore as on March 31, 2023, the report said.

It added that the net worth of five PSUs out of 28 had been completely eroded by accumulated losses and their net worth was negative.

The profit earned by 10 out of 20 PSUs was Rs 879.22 crore in 2022-23. This compares to nine PSUs that earned profit of Rs 540.16 crore in 2020-21.