15 public sector undertakings in Odisha post Rs 507 crore loss, says CAG report

BHUBANESWAR: With a loss of Rs 406.66 crore, the Grid Corporation of Odisha Limited (Gridco) has topped the list of loss-making public sector undertakings (PSUs). Of 56 working PSUs of the State, 35 earned a profit of Rs 2028.23 crore and 15 PSUs incurred loss of Rs 507.36 crore, said the report of the Comptroller and Auditor General (CAG) on PSUs for the year ending March 2017.

The Odisha Mining Corporation (OMC) continues to be the major contributor to profits. The company registered a profit of Rs 1,320.51 crore in 2016-17. The Odisha Power Generation Corporation (OPGC) and Odisha Hydro Power Corporation are among the profit-making PSUs with a contribution of Rs 178.16 crore and Rs 137.97 crore respectively to the State economy. The PSUs which incurred heavy losses include Gridco, Odisha Rural Housing and Development Corporation at Rs 42.93 crore and IDCOL Kalinga Iron Works at Rs 21.18 crore, the report said.

The Odisha State Civil Supplies Corporation (OSCSC) is the only PSU which prepared its accounts on no-profit, no-loss, while five companies are yet to start operation or commercial production. The five PSUs are IDCO SEZ Development Limited, Bhubanesawar Smart City Limited, Rourkela Smart City Limited, Kalinga Bidyut Prasaran Nigam Private Limited and Inland Waterways Consortium of Odisha Limited.

The State Government had made an investment of Rs 12,920.5 crore in 84 PSUs as on March 2017. Working PSUs registered a turnover of Rs 21,596.54 crore as per their latest finalised accounts. This turnover is equal to 6.87 per cent of the State Gross Domestic Product (SGDP).

Return on capital employed decreased to 15.15 per cent in 2016-17 against 18.79 per cent in 2015-16 due to incorporation of two new companies - Bhubanesawar Smart City Limited and Rourkela Smart City Limited - with a capital outlay of Rs 393.21 crore and Rs 154.54 crore respectively.“The reduction on return on capital employed was also due to increase in loss of Gridco to Rs  406.66 crore in 2015-16 from Rs 99.53 crore in 2014-15,” the audit report said.The CAG has advised the State Government to wind up the non-working PSUs as they have not been contributing to the State’s economy. Of 28 non-working PSUs, 18 have started liquidation process.