Compliance Performance

Report No.3 of 2018 - Public Sector Undertakings Government of Karnataka

Date on which Report Tabled:
Thu 22 Feb, 2018
Date of sending the report to Government:
Wed 21 Feb, 2018
Government Type:
Sector Industry and Commerce


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 2017, the State had 90 working Public Sector Undertakings-PSUs and 12 non-working PSUs, the total investment being ` 1,03,717.40 crore, the Government contributing ` 23,115.41 crore.

2. Performance Audits relating to Government Companies

The Report includes Performance Audits on the ‘The Performance of Raichur Thermal Power Station Unit-8 of Karnataka Power Corporation Limited’ and ‘Implementation of Projects by Cauvery Neeravari Nigama Limited'.  Audit concluded that the Performance of the Unit-8 was sub-optimal in the first four years due to failure of the Company to avert failure of equipment.  There were no immediate plan for disposal of ash, which was alarming.  Cauvery Neeravari Nigama Limited did not complete 5,968 ha of potential oriented and 42,401 ha of FIC works even after 12 years, besides delay in achieving the objectives of filling up of 81 tanks.  Total expenditure incurred on these was ` 560 crore.

3. Compliance Audit observations

This included deficiencies in planning, investment and other activities in the management of PSUs, which resulted in financial irregularities of ` 152.42 crore.

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