CAG report critical of Guj govt PSUs

Ahmedabad, Mar 30 | Updated: Mar 31 2007, 07:38am hrs
Taking a ride on the public sector undertakings (PSUs) of the Gujarat government, the Comptroller and Auditor General of India (CAG) has criticised the performances of some of the state PSUs, which include Gujarat Urja Vikas Nigam Ltd (GUVNL), Gujarat Water Infrastructure Ltd (GWIL) and Gujarat Mineral Development Corp Ltd (GMDC). sorted to borrowing for financing losses.

The CAG report further pointed out that GUVNL had failed to improve the existing system for the recovery of its dues from consumers in order to minimise the bCriticising Gujarat Urja Vikas Nigam Ltd (Earstwile Gujarat Electricity Board) for failing to improve the existing system of recovery of its dues, CAG in its report for the year ended March 31, 2006, which was tabled in the state assembly on Friday, has remarked that GUVNLs financial management was found to be weak as the board had reorrowings. Not only that, the board also failed to adhere to its own norms for recovery of security deposit from consumers, the report said adding, The board sustained a revenue loss of Rs 351.15 crore due to non-implementation of tariff award in the agriculture sector.

Another state owned company to face the ire of CAC was Gujarat Mineral Development Corp (GMDC). Terming GMDCs performance, relating to mining activities, as deficient due to failure to complete the required formalities, the report said, The company failed to achieve targeted production in any of the years.

In case of GWIL, the CAG report pointed out that the performance of GWIL in the implementation of bulk water transmission projects was found to be deficient in areas such as project planning, financing, implementation and pricing of water and internal control. The companys failure to charge the recommended price for water supply to the industry resulted in the loss of potential revenue of Rs 8.10 crore.

The CAG report also criticised Gujarat Women Economic Development Corporation Ltd for the violation of scheme guidelines by way of accepting inadmissible income certificates, improper disbursements and diversion of funds. While in the case of Gujarat Rural Industries Marketing Corp Ltd, the report remarked that the performance of the corporation for the upliftment of the artisans was dismal.