As many as 188 government companies and corporations had racked up accumulated losses of Rs 1,74 lakh crore as of March last year, said a report from the central government auditor.
Of these, the net worth of 90 companies had been completely eroded, said the Comptroller and Auditor General of India. And the aggregate net worth of these companies had become about minus Rs 1.16 lakh crore as of March last year.
Only 13 of these 90 companies earned profit of Rs 1,713 crore for the financial year 2019-20.
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The auditor also noted “undue enrichment” for state-run refiner Indian Oil Corporation. This is explained as follows: IOC collected Rs 262.6 crore of turnover tax from consumers in violation of a law. But it settled the legal case with a state government by making a payment of Rs 65.6 crore against a total penalty of Rs 262.6 crore.
This resulted in “undue enrichment” of Rs 197 crore, the auditor said.
The auditor also pulled up state-owned Oil and Natural Gas Corporation (ONGC) for flaring of high-pressure gas. “From financial year 2012-13 to 2019-20, high-pressure gas worth Rs 1,021 crore was flared,” it said.
Of this, the value of high-pressure gas flared in the Mumbai High Field due to avoidable reasons – power shutdown, non-availability of standby process gas compressor, and tripping of process gas compressor – was Rs 816 crore,” the auditor noted.
Coming to Air India, it remarked that the firm shelled out an “avoidable” penalty of Rs 43.8 crore to Boeing for non-adherence with contractually stipulated timelines for an aircraft component service programme.