TG PSUs bleed Rs 51,000 Crore: CAG

metro india news  I hyderabad

The Comptroller and Auditor General (CAG) of India has released a critical report on the performance of Telangana’s Public Sector Undertakings (PSUs) and Public Sector Enterprises (PSEs) up to March 2023, exposing significant financial losses, operational inefficiencies, and governance failures.

According to the report, Telangana has 83 PSUs, of which 16 are closed or under liquidation. Of the 67 operating units, 49 delayed the submission of accounts, allowing CAG to analyse only 18 entities with a combined turnover of Rs 95,204 crore. 

These 18 PSUs had total investments of Rs 98,572 crore, yet 11 reported losses while only 6 were profitable. The net worth of nine companies was completely eroded, resulting in an overall negative net worth of Rs 50,930 crore.

The CAG expressed serious concern over poor corporate governance. In 15 PSUs reviewed, nine failed to appoint independent directors, and no meetings of independent directors were held. Five lacked audit committees, and nine had no Nomination and Remuneration Committee (NRC). Seventy-one PSUs failed to submit accounts on time.

Special audit on Singareni Collieries revealed major irregularities in diesel usage and contracts. Excess diesel consumption beyond requirements led to Rs 251 crore in avoidable expenditure. Non-adherence to contract conditions imposed an additional burden of Rs 74 crore, while lapses in coal transportation caused Rs 25 crore in losses. The report also flagged excess transport charges of Rs 1,078 crore and non-compliance with environmental norms, including failure to establish effluent treatment plants.

The CAG has issued several recommendations, urging the government to review the performance of loss-making PSUs, provide incentives where viable, or initiate closure. For Singareni, it suggested stricter contract enforcement, revised safety provisions, rationalisation of coal transport charges, and use of processed ash instead of river sand for mine backfilling.