Most Bihar PSUs in red and ruins: CAG report
PATNA: Only 18 out of 79 state public sector undertakings (PSUs) in Bihar, including nine from the power sector, have finalised their accounts in the last three years and 75 of them have arrears in accounts since 1977-78, says the report of the Comptroller and Auditor General (CAG) of India for the year ending March 31, 2019.
“Of the 18 PSUs that finalised accounts up to 2018-19, 10 earned profit of Rs 310 crore, while eight incurred loss of Rs 2,778.54 crore, with the overall loss of the 18 PSUs coming to Rs 2,467.56 crore in 2017-19,” says the report, which was explained by the principal accountant general (PAG) Ramavatar Sharma at his office.
“As on March 31, 2018, 42 state PSUs, having a total investment of Rs 773.44 crore, were nonfunctional for more than five years. While the Bihar government has already decided to wind up 31 of them, no action has been taken in respect of 11 companies,” the report says.
According to the report, though the Bihar government has provided Rs 197.93 crore as subsidy to the Bihar State Sugar Corporation Limited for payment of salary, wages etc. during the last three years, the accounts of the company remain pending for the last 34 years.
“Accounts of non-functional companies remain in arrears for one year to 42 years (since inception). The shortcomings in respect of accounts of Bihar State Hydroelectric Power Corporation Limited from 2006-07 to 2009-10, South Bihar Power Distribution Company Limited and North Bihar Power Distribution Company Limited for 2017-18, Bihar State Food and Civil Supplies Corporation Limited from 1999-2000 to 2002-03 were so serious that the CAG has declined to give opinion,” says the report. The CAG report has also highlighted how the Bihar Rajya Pul Nirman Nigam Limited
made payment of Rs 66.25 crore to contractors prior to technical sanction, another Rs 4.08 crore to design consultant without execution of agreement and appointed supervision consultant on a nomination basis without recording full justification for single-source selection in violation of the Bihar finance rules, 2005.
Govt redeems own land
The report has underlined how the transport department recovered in March 2019 the entire outstanding loan (principal) of Rs 874.81 crore from the Bihar State Road Transport Corporation (BSRTC) by taking over its physical property, including the land valued at Rs 615.60 crore, which was already owned by the Bihar government. BSRTC was given loan at the rate of 13% per annum, while the average cost of borrowed funds for the government ranged between 6% -10%, to pay wages and emoluments to its retired/deceased employees by the order of the Supreme Court and High Court.