Shillong, Oct. 23: Public sector undertakings (PSUs) in Meghalaya have been incurring losses running into crores of rupees for the past six years, according to the report of the Comptroller and Auditor General (CAG) for the year ended March 31, 2012.
From 2006 to 2012, the working PSUs incurred losses to the tune of Rs 318.43 crore. The losses which peaked at Rs 99.36 crore in 2006-07, reduced significantly to Rs 5.51 crore in 2009-10. However, in 2010-11, the losses were recorded at Rs 96.96 crore, while in 2011-12, it was Rs 85.76 crore. As of March 2012, there were 15 PSUs, of which 14 were operational, the report says.
The report points out that in 2011-12, only two PSUs — the Meghalaya Government Construction Corporation and the Meghalaya Industrial Development Corporation Ltd — made a total profit of Rs 1.24 crore. The remaining 12 PSUs incurred losses to the tune of Rs 87 crore, including a loss of Rs 56.42 crore for the erstwhile Meghalaya State Electricity Board in 2009-10. (See chart)
Mawmluh Cherra Cements Ltd (MCCL), with losses of Rs 18.71 crore, follows the electricity board, now known as Meghalaya Energy Corporation Ltd.
According to the CAG report, the losses were attributed to deficiencies in financial management, planning and implementation of projects, operations and monitoring. A review of the latest audit reports shows the PSUs incurred losses to the tune of Rs 66.51 crore and non-useful investment of Rs 1.40 crore, which were controllable through better management.
The report points out that investment in PSUs had increased by 21.66 per cent from Rs 1,290.34 crore in 2006-07 to Rs 1,569.81 crore in 2011-12.
“In Meghalaya, the PSUs occupy a modest position in the economy. The working PSUs registered a turnover of Rs 463.14 crore for 2011-12 as on September 2012. This was equal to 2.91 per cent of the state’s Gross Domestic Product (GDP) for 2011-12. The working PSUs incurred losses of Rs 85.76 crore in 2011-12 and had employed 4,609 employees as of March 2012,” the report said.
The report also revealed that the state government undertook no exercise for the divestment, privatisation and restructuring of PSUs in 2011-12.