CAG Report focuses on the following Ten state owned public sector units (PSUs) of our Jharkhand State, which continue to bleed losses and squander precious public money.
- Jharkhand State Electricity Board (JSEB),
- Jharkhand Hill Area Lift Irrigation Corporation (JHALCO),
- Jharkhand Police Housing Corporation (JPHC),
- Jharkhand Tourism Development Corporation (JTDC),
- Jharkhand State Forest Development Corporation (JSFDC),
- Jharkhand State Mineral Development Corporation (JSMDC),
- Jharkhand Industrial Infrastructure Development Corporation (JIIDC),
- Greater Ranchi Development Agency (GRDA),
- Tenughat Vidyut Nigam Limited (TVNL), and
- Jharkhand Silk and Handicraft Development Corporation (JHARCRAFT)
Now let us see what does the CAG report said about the above named problem-children of the Jharkhand state.
- The Report said: These PSUs comprising 9,010 employees have incurred controllable losses of Rs 1,894.39 crore and they have shown unprofitable investments of Rs 74.30 crore between 2006 to 2009. Their net losses are pegged at Rs 292 crore.
Our Remarks: Doing backhanded calculation each of 9010 employee individually contributed about Rs. 20 Lakh towards the controllable losses. And we have not said anything about the uncontrollable losses. besides why did they invest so much on the unprofitable investments.
- The Report said: The thrust of the investment on PSUs was in the Power Sector, which increased from Rs 488.59 crore in 2003-04 to Rs 3,874.95 crore in 2008-09. The thrust of the investment on PSUs was in the power sector, which increased from Rs 488.59 crore in 2003-04 to Rs 3,874.95 crore in 2008-09. The total investment in the 10 PSUs and their turnover together aggregated to Rs 5,463.02 crore during 2008-09. Out of them, Jharkhand State Electricity Board (JSEB) and Tenughat Vidyut Nigam Ltd (TVNL) together accounted for 98.71 per cent of the aggregate investment of Rs 3,874.65 crore and turnover of Rs 1,518.04 crore.
Our Remarks: Despite the spending of mega-bucks in the Power Sector, our entire Jharkhand state continues to reel under severe electricity shortage.
- The Report said: The losses suffered by the PSUs can be mainly attributed to inadequacies in financial management, planning, implementation of project, operations and monitoring.
Our Remarks: Is would be interesting to note whether the utter failure of PSUs’ entire Management team is deliberate or does it reflect on their inability to manage the profitable ventures?
- The Report said: The three PSUs — Jharkhand Industrial Infrastructure Development Corporation (JIIDCO), Jharkhand Police Housing Corporation (JPHC) and Jharkhand Tourism Development Corporation (JTDC) — earned an aggregate profit of Rs 0.76 crore but did not declare any dividend. It seems that Jharkhand Government has not formulated any dividend policy under which all PSUs are required to pay a minimum return on the share capital contributed by the state government.
Our Remarks: It seems that our Jharkhand Government never expected theses PSUs to make profit. In the absence of state government’s checks and balances and any accountability these PSUs continue to waste the funds.
- The Report said: The various PSUs have kept their accounts (statements of income and expenditure) pending for last so many years, thus running the risk of fraud and leakage of public money. The state had invested Rs 3,640.53 crore in 10 PSUs during these years for which accounts have not been finalized.
(i) TVNL has kept its accounts pending since 2000.
(ii) JSMDC has not completed its income-expenditure statement since 2003.
(iii) JTDC’s account is pending since 2004,
(iv) JHALCO and JSFDC’s accounts are pending since 2007,
(v) JPHC’s account is pending since 2008,
(vi) JIIDCO, GRDA and Jharcraft’s accounts are pending since 2006.
(vii) JSEB too had kept its accounts pending since 2002 and is said to have updated its accounts up to 2008-09 recently, after it was pressured by Jharkhand State Regulatory Commission.
In the absence of accounts and subsequent audits, it cannot be ensured whether the investments and expenditures incurred have been properly accounted for, and whether the purpose for which the amount was invested has been achieved or not. The state’s investments in PSUs have remained outside the scrutiny of the state legislature.
The public fund monitor said the state PSUs are being run inefficiently and that there is a tremendous scope for improvement in their overall performance. They need to imbibe greater professionalism to ensure delivery of their products and services. The CAG had recommended the government to set up a cell to oversee and monitor the clearance of arrears and set targets for the companies. The state should introduce a performance-based system of accountability for the PSUs.
Our Remarks: We ditto the pertinent comments made in the CAG reports.
The recently tabled CAG report spoke in very loud voice about the incompetence of the entire government machinery to carry out welfare and development programmes in Jharkhand. It appears as if the entire administrative and elaborate governance system has to step forward and take the blame for the acts of omission and commission, their utter failure to put an end to the all-pervasive corruption and ongoing loot-raj in the poor state of Jharkhand. But this may never-ever happen in Jharkhand.
The life and corruption simply goes on in Jharkhand.
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