Maha govt should consider to close 32 PSUs: CAG

MUMBAI: The Comptroller and Auditor General has advised Maharashtra government to "consider the option of closing down 32 Public Sector Undertakings" and suggested merging six state companies working on the development of weaker sections of the society.
The annual turnover of 28 of the government companies has been less than Rs 5 crore even after completion of five years of their existence, according to the CAG report which was tabled in the just-concluded monsoon session of the state legislature.
Similarly, four state government owned companies--two working and two non functional PSUs--have been incurring losses for five consecutive years leading to negative net worth, it said.
Besides, advising to consider option of closing 32 entites, CAG has suggested merging the six PSUs working on development of economically weaker sections.
The government took decision to wind up 14 companies way back in 1992 but the liquidation process could not be initiated due to stay order issued by Aurangabad Bench of Mumbai High Court, the report said.
The government has also decided to close down some mills belonging to Maharashtra State Textile Corporation Ltd, it said.
The total investment in working PSUs grew to Rs 20,633.27 crore as on March 31, 2003 from Rs 19,668.80 crore as on March 31, 2001, CAG said, adding the total investment in non-working PSU also went up to Rs 191.40 crore as on March 31, 2002 to Rs 130.96 crore as on March 31, 2001.