Odisha: CAG flags Rs 2,537 crore loss by power PSUs

BHUBANESWAR: Despite infusion of substantial capital by the State Government over the years, the accumulated losses of power sector PSUs have increased from Rs 604.89 crore in 2013-14 to Rs 2,537.16 crore in 2017-18.

“At the aggregate level, the accumulated losses of the eight power sector PSUs were Rs 2,541.91 crore against the capital investment of Rs 3,948.67 crore as on March 31, 2018. 

The net worth of Gridco has been fully eroded, while seven other PSUs had positive net worth of Rs 5,616.47 crore,” said the audit report of the Comptroller and Auditor General (CAG).

The audit report on economic and public sector undertakings for the year ending March 2018 said Gridco, the bulk supplier of power to the State, had a negative net worth of Rs 3,853.75 crore.

The net worth is the company’s sum total of the paid-up capital and free reserves and surplus minus accumulated losses and deferred revenue expenditure. Essentially it is a measure of what an entity is worth to the owners. 

“A negative net worth indicates that the entire investment of the Government has been wiped out by accumulated losses and deferred revenue expenditure. Of the eight PSUs, the net worth of Gridco had fully eroded,” the report said.

Apart from Gridco, OHPC, OPGC and OPTCL, the Government floated four other PSUs namely Odisha Thermal Power Corporation Ltd, Kalinga Bidyut Prasaran Nigam Pvt Ltd, Green Energy Development Corporation of Odisha Ltd and Odisha Coal and Power Ltd.

The Kalinga Bidyut Prasaran Nigam incorporated in 2012-13 had not commence any commercial activity till 2017-18 defeating the purpose of its incorporation. 

The total investment (equity and long term loans) of the Government in the eight companies was Rs 15,337.42 crore consisting of Rs 3,948.67 crore (25.75 per cent) towards equity and Rs 11,388 crore (75.25 per cent) in long term loans. 

The overall loss incurred by the eight PSUs was Rs 75.81 crore in 2017-18 against Rs 187.44 earned in 2013-14. According to the accounts of the PSUs for 2017-18, five companies earned profit of Rs 124.75 crore while two PSUs incurred loss of Rs 200.56 crore. 

The top three profit making PSUs were OHPC (Rs 98.70 crore), OPTCL (Rs 17.97 crore) and OPGC (Rs 4.79 crore). While Gridco incurred a loss of Rs 197.50 crore, Odisha Coal and Power booked a loss of Rs 3.06 crore, the report said.

Profit making units

OHPC - Rs 98.70 cr

OPTCL - Rs 17.97 cr

OPGC - Rs 4.79 cr

Govt’s total investment in 8 PSUs - Rs 15,337.42 cr

Overall loss incurred by 8 PSUs - Rs 75.81 cr