Millennium Post

CAG criticises Bengal PSUs’ dismal show under Left rule

Criticising the Public Sector Undertakings under the West Bengal government, the Comptroller and Auditor General has said that with better management of its resources, PSUs' accumulated losses of more than Rs 6,000 crore could have been 'controlled'.

'The losses of PSUs are mainly attributable to deficiencies in financial management, planning, implementation of project, inefficient operation and monitoring,' said a CAG report tabled in the state Assembly this week.

A review of three years' audit reports of CAG showed that the state PSUs' losses of Rs 6,072.96 crore were 'controllable' with better management.

'Losses can be eliminated or the profits can be enhanced substantially.

The PSUs can discharge their role efficiently only if they are financially self-reliant,' the CAG report said, while stressing on the need for professionalism and accountability in the functioning of PSUs.

During the year 2010-11, 40 PSUs incurred total losses of Rs 812.38 crore with transport service providers like The Calcutta Tramways Company Ltd [Rs 208.25 crore] and The Durgapur Projects Limited [Rs 183.5 crore] leading the pack.

Stating that there has been no significant improvement in the financial position of the PSUs, the report said the return on employment has decreased from 6.14 per cent in 2005-06 to 5.97 per cent in 2010-11.

The transaction audit observations in the report highlight deficiencies in the management of PSUs which resulted in serious financial implications.
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