Compliance Performance
Karnataka

Report no. 5 of 2019 - PSU, Government of Karnataka

Date on which Report Tabled:
Tue 18 Feb, 2020
Date of sending the report to Government
Wed 27 Nov, 2019
Government Type
State
Sector Power & Energy,Industry and Commerce

Overview

1. Overview of Government Companies and Statutory Corporations

Audit of Government Companies is governed by Sections 139 and 143 of the Companies Act, 2013.  Their accounts are subject to supplementary audit by the CAG.  Audit of Statutory Corporations is governed by their respective legislations.  As on 31March 2018, the State had 94 working Public Sector Undertakings-PSUs and 13 non-working PSUs, the total investment being Rs.1,14,262.25 crore.  The State Government contributed Rs.4,440.99 crore in Power Sector PSUs and Rs.14,643.85 crore in PSUs (other than Power Sector) in the form of equity, loans & grants/subsidy during 2017 18.

2. Performance Audits relating to Government Companies

The Report includes Performance Audit on the ‘Execution of Yeramarus Thermal Power Station of Raichur Power Corporation Limited’ under Power Sector and ‘Benefits derived by the State Government under Accelerated Irrigation Benefit Programme' under other than Power Sector.  Audit concluded that despite investment of Rs.12,915.90 crore into the Project, due to cost and time overruns in the YTPS project, the Electricity Companies of Karnataka had to procure 22,283.03 MUs of short/medium-term power to meet the deficit during 2014 15 to 2017-18, at an additional cost of Rs.2,517.92 crore.  Further, the implementing agencies created canals and distributories under AIBP capable of providing irrigation to 55,516 ha and completed ERM work to provide water to 1,01,343 ha during 2013-18.  However, the State Government and the implementing agencies were not able to fully leverage the benefits of AIBP in terms of funding and were unable to fast-track the completion of the projects and realise the ultimate Irrigation Potential

3. Compliance Audit observations

This included deficiencies in planning, investment and other activities in the management of PSUs, which resulted in financial irregularities of Rs.54.92 crore.

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