THIRUVANANTHAPURAM: State-owned public sector units together incurred a loss of Rs 1,222.06 crore in 2018-19, according to the CAG report on PSUs tabled in the assembly on Thursday. The KSRTC was the biggest loss-making unit along with Textiles Corporation, Civil Supplies Corporation and Travancore Titanium while KSFE, KMML, Beverages Corporation and Cashew Development Corporation made profit.
The CAG report said a loss of Rs 536.37 crore incurred by working PSUs — other than in power sector — in 2014-15 increased to Rs 1,222.06 crore in 2018-19. Of the 1,221 working state PSUs, 53 together earned a profit of Rs 574.49 crore while 58 PSUs together incurred a loss of Rs 1796.55 crore.
The report pointed out that deficiencies in planning and implementation of Bus Terminals-cum Shopping Complexes (BTSCs) by KSRTC led to delay in completion and inadequate collection of interest-free security deposit for financing the construction. This resulted in loss of licence fee (Rs 25.59 lakh) in three BTSCs, refund of IFSD (Rs 50.95 lakh) in one BTSC, reduced realisation of IFSD (Rs 19.56 lakh) in one BTSC and extra expenditure (Rs 4.57 lakh) in one BTSC. Delay in conducting tender-cum-auction to rent out the vacant spaces in completed BTSCs resulted in under-utilisation of commercial areas.
The audit report observed that non-adherence to state government guidelines for implementing e-governance initiatives affected timely implementation of ERP (Enterprise Resource Planning) systems in seven PSUs. Five PSUs could not derive any benefit even after incurring Rs 1.15 crore due to non-completion of ERP systems. Similarly delay in energy audit, failure to achieve specific energy consumption norms and non-availing of open access facility led to extra expenditure. In another similar instance, non-procurement of adequate quantity of paddy by PSUs led to under-utilisation and idling of paddy processing capacity established by spending Rs 21.85 crore. Only a meagre quantity of the total rice produced was channelled through public distribution system, thus hindering the objective of ensuring fair price to farmers and rice at a reasonable rate to consumers.
Delay in completing civil works, deficiency in tendering and denial of consultancy fee by State Poultry Development Corporation resulted in avoidable delay in completing Hi-tech Commercial Layer Farm project and idling of investment amounting to Rs 7.31 crore, said the report.
Major profit-making PSUs
Kerala State Financial Enterprises Ltd
Rs 144.41 crore in 2017-18
Kerala Minerals and
Metals Ltd
Rs 104.46 cr in 2018-19
Kerala State Beverages Corporation
RS 85.93 crore in 2016-17
Kerala State Cashew Development Corporation Rs 61.59 crore in 2013-14
Major loss-making PSUs
Kerala State Road Transport Corporation
Rs 1,431.29 crore in 2014-15
Kerala State Textiles Corporation
Rs 53.17 crore in 2014-15
Kerala State Civil Supplies Corporation
Rs 25.91 crore in 2015-16
Travancore Titanium Products Ltd
Rs 23.63 crore in 2014-15