CAG detects loss of INR 2.62 crore under PSU

Our Reporter
Dimapur, Aug. 6 (EMN): The Comptroller and Auditor General (CAG) of India detected an overall loss of INR 2.62 crore under five public sector undertakings (PSU) in Nagaland during 2018-19.

This was stated in the CAG overview report which was presented during just concluded 8th session of the 13th Nagaland Legislative Assembly (NLA).

The report mentioned that the state has six PSUs, five working and one non-working company as on March 31, 2019, wherein the investment of the state government is six PSUs was INR 35.15 crore consisting of INR 34.34 crore towards capital and INR 0.81 crore towards long-term loans.

It informed that the combined investment of state and other stakeholders as on March 31, 2019, under various important sectors stood at INR 115 crore, and the combined investment was the highest in the finance sector PSUs (INR 74.62 crore) followed by miscellaneous sector PSUs (INR 19.23 crore).

The report also stated that fie working PSUs has arrears of total 18 accounts ranging from one to nine years as per information available on September 2019. And during 2018-19, the four working PSUs finalised total eight accounts, while remaining one PSU has not finalised any accounts after 2013-14.

It stated that during 2018-19, the state government has provided budgetary support of INR 28.89 crore in the form of long term loans (INR 3.85 crore) and grants and subsidy (INR 25.04 crore), as per the information furnished by the PSUs.

As per the latest finalised accounts of PSUs on September 30, 2019, the turnover of five working PSUs stood at INR 6.70 crore. The accumulated losses (INR 65.19 crore) of four out of five working PSUs had completely eroded their paid-up capital (INR 26.03 crore. And during 2018-19, five working PSUs incurred overall losses of INR 2.62.

Under the compliance audit it stated that Nagaland Industrial Developmnet Corporation Limited paid an advance of INR 50 lakh to the chairman of the company by diverting government grants without approval of the competent authority and has not recovered the same.

It also stated that Nagaland State Mineral Development Corporation Limited paid an additional cost of INR 20.72 crore as cost escalation on a bridge work contrary to the contract terms after settlement of contractor’s dues and closure of work.