M'shtra: PSUs recorded Rs 3,002.28 cr losses

Mumbai, Apr 29: Castigating the performance of PSUs in Maharashtra, the Comptroller and Auditor General (CAG) report said eight government companies and statutory corporations out of the 27 loss-incurring working PSUs had accumulated losses of Rs 3,002.28 crore which exceeded their aggregate paid up capital of Rs 1,018.89 crore.

CAG report stated that the accounts of 48 working government companies and two working statutory corporations were in arrears for periods ranging from one to fifteen years. The report dealt with the performance reviews of 72 government companies and four statutory corporations.

The report hit out at the functioning of Maharashtra State Electricity Distribution Company Ltd (MSEDCL) with respect to prevention and detection of distribution losses. Measures like periodical inspection and testing and consumers' installations, recalibration of meters, checking of the premises of permanently disconnected consumers and paid pending cases, repairs/replacement of faulty meters were not effectively implemented.

There was no systematic follow up on complaints of theft of electricity, penalty charges and compounding charges, though levied were not recovered, thereby diluting the deterrent effect of these penal provisions. Defective procedures adopted during investigations resulted in the company losing court cases.

There was lack of follow up action in respect of cases decided in favour of the company.

The report said transmission and distribution losses of the company were 32.58 per cent at the end of March 2006 despite a commitment in the MoU with the Centre to bring down these to 18 per cent by March 2003.

CAG report said that the five companies, set up with the objective of raising the economic status of scheduled castes, scheduled tribes and other backward classes, implemented the training schemes through private institutes in violation of the state government's directives.

Implementation was deficient as there was no system to ensure that the candidates selected for training actually attended the training programmes. Utility of the training schemes in securing gainful employment was not known in the absence of feedback from the trainees. There were several deficiences/irregularities in disbursement of the financial assistance. The subsidy was disbursed without ensuring equivalent disbursement of bank loan.

The recovery performance was dismal and post disbursement monitoring was poor, the report said.

UNI