Turnover of PSUs decline 17% in Karnataka

BANGALORE: The turnover of public sector undertakings (PSUs) in Karnataka declined by 16.88 per cent in 2011-12 compared to the previous year, according to a CAG report.


The state PSUs registered a turnover of Rs 34,490.58 crore for 2011-12, which was equal to 7.94 per cent of the State Gross Domestic Product, said the report for the year ended March 2012, tabled in the Legislative Assembly today.

The PSUs had accumulated a profit of Rs 1,368.93 crore as per their finalised accounts. "The turnover declined by 16.88 per cent over last year's figures, which led to lower contribution to the State GDP", it said.

As on March 31, 2012, the investment (capital and long term loans) in all the 90 PSUs -- 76 working and 14 non-working -- stood at Rs 66,712.87 crore, mainly in infrastructure and power sectors.

The government contributed Rs 11,853.81 crore towards equity, loans and grants/subsidies in 2011-12.

The audit pointed out various deficiencies in the functioning of the PSUs. A review of the latest audit report of the CAG shows that there were losses of Rs 1,890.63 crore and infructuous investments of Rs 112.95 crore, which were controllable with better management.

"There was scope to improve their functioning and enhance profits. There was a need for greater professionalism and accountability in their functioning," the report added.