Five power sector PSUs incurred loss of ₹2,019 crore: CAG report

Five out of six public sector undertakings (PSUs) in the power sector in Karnataka incurred losses running up to ₹2,019.09 crore, while six PSUs earned a profit of ₹413.51 crore during 2017-18, according the Comptroller and Auditor General (CAG) report on PSUs for the year ended March 2018.

The major contributors to the profit were Karnataka Power Transmission Corporation Ltd. (₹212.14 crore) and Bangalore Electricity Supply Company Ltd. (₹84.77 crore). Among those that incurred heavy losses were Raichur Power Corporation Ltd. (₹1,562.76 crore), Gulbarga Electricity Supply Company (₹312.84 crore), and Hubli Electricity Supply Company (₹140.28 crore).

The power sector PSUs showed net aggregate profits of ₹372.60 crore, ₹422.87 crore, and ₹19.25 crore during 2014-15, 2015-16 and 2016-17, respectively. They incurred net aggregate loss of ₹533.59 crore and ₹1,605.58 crore during 2013-14 and 2017-18, respectively.

According to the CAG, there are 94 PSUs in the State, and they had accumulated losses of ₹1,879.13 crore as per their latest finalised accounts.

The report stated that Karnataka State Minerals Corporation Ltd. had acquired land for construction of its corporate office without verifying its suitability for construction. This resulted in the blocking of funds without deriving intended benefits.

Mysore Sales International Ltd. cancelled an agreement to lease out the property, based on the decision of its board of directors without establishing that the company’s interest was seriously affected. This resulted in a loss of ₹5.73 crore, the CAG report said.

Why you should pay for quality journalism - Click to know more

Recommended for you
This article is closed for comments.
Please Email the Editor

Printable version | Mar 29, 2020 3:33:25 PM | https://www.thehindu.com/news/national/karnataka/five-power-sector-psus-incurred-loss-of-2019-crore-cag-report/article30854657.ece

Next Story