CAG observes lapses in PSUs' functioning

Hyderabad, Mar 30 (UNI) The Comptroller and Auditor General has found avoidable/wasteful expenditure in Public Sector Undertakings and blockage of Rs 36.93 crore to them due to unfavourable directions of the Andhra Pradesh Government, faulty management decisions, undue favours to contractors and unproductive expenditure.

The CAG report for the year ending March 2006, which was tabled in the House today, observed that Hyderabad Information Technology Venture Enterprises Limited had made an investment of Rs 7.80 crore in venture capital undertakings without following investment guidelines and as a result the investment remained dormant without any return.

It indicted the Central Power Distribution Company and Eastern Power Distribution Company for failure to collect electricity duty in respect of power supplied to ferro alloy manufacturing units resulting in a loss of Rs 13.55 crore.

CAG found the Transmission Corporation of Andhra Pradesh Limited extending undue benefits of Rs 8.28 crore to an independent power producer by way of reimbursement of insurance charges not covered by power purchase agreement.

The sale of liquor at old rates by the Andhra Pradesh Beverages Corporation Limited after the announcement of the new excise policy had resulted in a loss of Rs 32.78 crore, while the Andhra Pradesh Forest Development Corporation Limited had suffered a lost of Rs 2.83 crore due to export of coffee at low rates as compared to rates prevailing in the domestic market despite upward trend in coffee price, it said.

The Andhra Pradesh State Trading Corporation suffered a loss of Rs 77.84 lakhs due to release of share of profit of Rs 1.50 crore to agents without receiving sale proceeds from the buyer. The Company was faced with claim for repayment of Rs 11.28 crore with interest to the banker, it added.

Andhra Pradesh State Road Transport Corporation's investment of Rs 1.26 crore in Real Time Passenger Information System had remained unproductive as it had been made without studying its feasibility, CAG observed, adding that the Andhra Pradesh Industrial Infrastructure Corporation Limited on directions of the State Government had allotted an alternative plot at original allotment rate instead of the prevailing market rate resulting in loss of Rs 78.52 lakhs.

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