Imphal, July 15 2010: Even though the Public Sector Undertaking (PSUs) which is to take significance role in the state economy, in the state these PSUs are registering in their turnover.

The Public Sector Undertakings are established in the state to carry out activities of commercial nature while keeping in view the welfare of people.

The state PUSs consists of State government companies and Statutory Corporations.

However, only eight companies out of 14 established by the government are functioning.

Six are not functioning.

The latest report of the Comptroller and Auditor General (CAG) pointed out that the PSUs incurred an aggregate loss of Rs 0.22 crore during the year 2008-09 as per their latest finalized accounts.

The state PSUs registered a turnover of Rs 9.25 crore by September 2009 .

The turnover was equal to 0.15 per cent of the State Gross Domestic Product (GDP) for 2008-09 but the PSUs incurred an aggregate loss of Rs 0.22 crore as per their latest finalized accounts.

A total of 14 government companies and the investment (capital and long term loans) in these 14 companies was Rs 99.92 crore which recorded decrease trend in investment.

As on March 2009, of the total investment in state PSUs, 43.11 percent was in working PSUs and the remaining 56.89 percent in non-working PSUs.

This total investment consisted of 80.48 percent towards capital and 19.52 percent in long-term loans, the CAG report ended March 31, 2009 for the state of Manipur stated.

The decrease in the total investment in 2008-09 was mainly due to decrease in loans in finance sector and exclusion of one non-working company and one statutory corporation which have been liquidated.

During the year 2008-09, out of the eight working PSUs, three PSUs earned a combined profit of Rs 1.35 crore and three PSUs incurred combined loss of Rs 0.54 crore.

Two working PSUs have not started commercial activities.

Manipur Industrial Development Corporation Limited and Manipur Police Housing Corporation are the two major contributors to profit while Manipur Handloom and Handicraft Development Corporation Ltd incurred loss.

The losses of PSUs are mainly attributed to deficiencies in financial management, planning, and inefficient running of their operations and lack of proper monitoring.

A review of three latest audit reports of CAG shows that the state PSUs incurred losses to the tune of Rs 2.85 crore and infructuous investment of Rs 0.19 crore which were controllable with better management, the CAG report pointed out.

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