By Nageshwar Patnaik in Bhubaneswar, September 27, 2016 : Odisha government owned Public Sector Units [PSU] have registered an accumulated profit of Rs 555.36 crore in 2014-15 compared to Rs 2339.35 crore in 2010-11,indicating poor performance of the PSUs, according to the Report of the Comptroller and Auditor General of India on PSUs for the year ended March 2015, which was tabled in the state Assembly on Monday.

Of 47 working PSUs, 28 PSUs earned profit of Rs 2006.48 crore and nine PSUS incurred loss of Rs 806.78 crore. One PSU – Odisha State Civil Supplies Corporation has reported ‘no profit no loss’ while nine companies have not yet started their commercial operation.

Among the profit making PSUS, Odisha Mining Corporation [OMC] takes the lead with a profit of Rs 1487 crore followed by Odisha Power Generation Corporation Ltd [Rs 229.63 cr], Odisha Power Transmission Corporation Ltd [Rs 52.30 cr] and Odisha State Beverages Corporation Ltd [Rs 49.56 cr]. GRIDCO Ltd reported heft loss of Rs 679.80 crore followed by Odisha State Financial Corporation [Rs 77.40 cr] and Odisha Rural Housing Development Corporation [Rs 31.71 cr].

At the end of March 2015, Odisha had 47 working PSUs (44 Companies and 3 Statutory Corporations) and 28 non-working PSUs (all Companies), of which working PSUs employed 19,000 employees. Functional PSUs reported a turnover of Rs 16,474.01 crore as on September 30, 2015.

“This turnover is equal to 5.30% of state gross domestic product indicating an important role by state PSUs in the economy”, the CAG report says.

The state government has invested Rs 12,928.02 crore in all 75 PSUs. Of 28 non-working PSUs, 17 PSUs were in the process of liquidation whose accounts were in arrears for 5 to 49 years and the remaining 11 non-working PSUs had arrears for 14 to 44 years, the report said. Incidentally, the number of accounts of working PSUs in arrears has increased from 39 in 2010-11 to 54 in 2014-15.

“Despite several correspondences and tripartite meetings held with the PSUs’ management and their statutory auditors to pull up their arrear accounts, these PSUs did not adhere to their action plant”, the CAG pulls up.

It may be recalled that the state government initiated reforms in PSUS ways back in 2005 know as Public Enterprise Restructuring Programme, which identified 35 loss-making PSUs. While 11 were identified for closure, 13 were to be privatized and nine restructured.

But the CAG report says, as of March 2015, only two – Orissa Timber and Engineering Works and General Engineering and Scientific Works were closed while three – Hirakud Industrial Works Ltd, IDCOL Cement Ltd and IDCOL Rolling Mills LTd were privatized and Odisha State Road Transport Corporation was restructured.

A decade after the reforms process began; the government is yet to take pro-active move for the remaining 29 PSUs which include 11 non-working PSUs. “Action is in progress for closure of 11 PSUs, privatization of 10 PSUs and restructuring of 8 PSUs”, the report says.

The CAG also rapped the government Company, Odisha Hydro Power Corporation [OHPC] for failing to increase its installed capacity during 2010-15, poor maintenance, non-compliance of safety regulations issued by Central electricity Authority even after four years of notification. “There were deficiencies in manpower management, inventory management and monitoring and internal control system of OHPC”, the report adds.

Similarly, the report finds fault with Odisha State Warehousing Corporation, a statutory body for failing to achieve the planned capacity addition under the Private Entrepreneurs [PEG]-2009 scheme of government of India. “OSWC mainly catered to the warehousing needs of the organized sector and failed to attract farmers for utilization of storage space”, the CAG observes.

The CAG has suggested OSWC to rationalize augmentation of storage capacities so as to optimize utilization of loss making or idle warehouses, make available its godowns to farmers at reasonable rates, ensure scientific storage facility and strengthen monitoring and internal control system.