There are 15 non-working PSUs in Karnataka, including seven under liquidation, says a CAG report tabled in the State Legislative Assembly as it recommended to the government to consider winding them up. The companies which have taken the route of winding up by Court order are under liquidation process for the last three to seven years.
“The process of voluntary winding up under the Companies Act is much faster and needs to be adopted/pursued vigorously”, it said.
CAG said: “The government may take a decision regarding winding up of the eight non-working PSUs where no decision about their continuation or otherwise has been taken after they became non-working. The Government may consider setting up a cell to expedite closing down its non-working companies”.
As on March 31, 2010, Karnataka had 75 working PSUs and 15 non-working PSUs, which employed 1.77 lakh employees, according to the report.
The state PSUs registered a turnover of Rs 36,369.87 crore for 2009-10 as per their latest finalised accounts. This turnover was equal to 12.19 per cent of State Gross Domestic Product indicating the important role played by the PSUs in the economy.
The PSUs had accumulated loss of Rs 197.93 crore as per their latest finalised accounts.
CAG (Comptroller and Auditor General) said the working State PSUs earned a profit of Rs 545.78 crore in the aggregate for 2009-10.
A review of three years” Audit reports of CAG shows that the PSUs” losses of Rs 417.48 crore and infructuous investments of Rs 302.40 crore were controllable with better management, the report said.
“Thus, there are tremendous scope to improve the functioning and enhance the profits”, it said. “The PSUs can discharge their role efficiently only if they are financially self-reliant. There is a need for greater professionalism and accountability in the functioning of PSUs”.