The working Public Sector Units (PSUs) of Himachal Pradesh had incurred a loss of Rs223.05 crore while the accumulated loss of all PSUs were Rs1,360.45 crore in fiscal year 2011-12, stated the Comptroller and Auditor General (CAG) report.
According to the CAG report tabled on Tuesday in the Assembly, the State had 19 working PSUs and two non-working PSUs and the investment made in these companies was Rs6,527.75 crore which increased by 64.92 per cent from Rs3,958.10 crore in 2006-07. The power sector accounted for 82.36 per cent of the total investment in 2011-12. The Government contributed Rs722.69 crore towards equity, loans and grants/subsidies during 2011-12.
The report said that out of 19 working PSUs, eight PSUs earned profit of Rs17.37 crore and seven PSUs incurred loss of Rs240.42 crore.
Three working companies have not prepared their profit and loss accounts while one company has not prepared its first account since incorporation.
The major profit contributors were Himachal Pradesh State Civil Supplies Corporation limited with Rs6.04 crore, Himachal Pradesh Tourism Development Corporation (HPTDC) earned profit of Rs1.58 crore while Himachal Pradesh State Forest Development Corporation earned profit of Rs7.71 crore.
The heavy losses were incurred by Himachal Pradesh State Electricity Board with Rs152.62 crore and Himachal Road Transport Corporation (HRTC) with Rs80.65 crore. The report said that the losses were attributable to various deficiencies in the functioning of PSUs.
A review of three year audit reports of CAG shows that the state PSUs losses of Rs2,980.43 crore were controllable with better management.
The report stated that the performance audit of Hydro power development through private sector participation revealed that out of 559 projects of 10,131 MW allotted to the independent power producers (IPP) during November 1991 to 2011-12, only 55 projects with capacity of 1805.45 MW were completed and made operational.
The report further said that the State Government had got identification of potential sites of small hydro power projects done on the basis of preliminary reconnaissance only and no system existed to conduct pre-feasibility studies to ensure realistic estimation of power potential.
The report has blamed for non-progress of 40 hydro power projects with total capacity of 315.35 MW to non-conducting of pre-feasibility studies, non-approval of DPRs, non-signing of implementation agreements by the IPPs.
The CAG report also showed concerns on environment negligence and said that it was quite visible which would put sustenance of aquatic eco-system and nearby ground water aquifers at risk. The CAG report advised the government to constitute a high-power committee at the State level to monitor the implementation of the projects and ensure that the projects do not have an adverse impact on the environment.
Himachal Pradesh Hydro Power generation potential is 23000 MW but only 8368 MW of power has been tapped in the state, according to the State’s economic survey report which was tabled last month in the Assembly.