Puducherry Govt should reconsider continuing with loss-making PSUs, CAG report says

In its annual audit report, tabled in the Legislative Assembly on Thursday, the CAG said six of 12 PSUs incurred losses to the tune of ₹52.37 crore

The Comptroller and Auditor General, in its report on the financial affairs of the Union Territory, has asked the Puducherry government to reconsider continuing with long years of loss-making Public Sector Undertakings (PSUs) if they did not serve any social welfare purpose. In its annual audit report, tabled in the Legislative Assembly on Thursday, the CAG said half of the total of 12 PSUs incurred losses to the tune of ₹52.37 crore. The other six units earned a profit of ₹28.05 crore during the period. Thus the aggregate loss of the government-owned companies was to the tune of ₹24. 32 crore. As on March 2020, there were eight companies with accumulated revenue losses to the tune of ₹801.88 crore. The net worth of seven out of eight units had been completely eroded, because of accumulated loss and their net worth was negative.