State-run firms in Karnataka incur Rs.865 crore losses: CAG

Monday March 14, 2011 11:22:20 PM, IANS

Bangalore: Twentysix state-run undertakings in Karnataka incurred a cumulative loss of Rs.865 crore during fiscal 2009-10, an audit report of the Comptroller and Auditor General (CAG) has said.

According to the CAG report, a copy of which was tabled in the state legislative assembly Monday, of the 75 state-run enterprises, 43 have posted a combined profit of Rs.1,411 crore during the fiscal under review.

The loss-making firms include power utilities Chamundeshwari Electricity Supply Corporation Ltd (Rs.217 crore), Gulbarga Electricity Supply Company Ltd (Rs.216 crore) and Hubli Electricity Supply Company Ltd (Rs.174 crore).

Among the profit-making majors are Karnataka Power Corporation Ltd (Rs.711 crore), Mysore Minerals Ltd (Rs.201 crore) and Hutti Gold Mines Company Ltd (Rs.125 crore).

The auditing of the state-run companies revealed that the losses were due to deficiencies in financial management, planning, project implementation and their operational functioning.

"The state public sector undertakings (PSUs) can discharge their role efficiently if they are financially self-reliant. There is a need for greater professionalism and accountability in their functioning," the report said.

As on March 31, 2010, the state has 75 functioning undertakings and 15 non-working, with 177,000 employees.

The cumulative turnover of all the firms last fiscal was Rs.36,370 crore, which is equivalent to 12.2 percent of the state gross domestic product. Their accumulated losses were Rs.198 crore.

Investments, including capital and long-term loans made in 90 state-run enterprises was Rs.54,231 crore as on March 31, 2010.

The state government contributed Rs.8,114 crore towards their equity, loans and grants/subsidies during last fiscal.
 

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