Bhubaneswar, March 31 Seven companies and corporations run by the Odisha government incurred a loss of Rs 794.98 crore during the 2022-23 financial year, the CAG said in a report.
The Comptroller and Auditor General of India (CAG) audited the financial performance of the State Public Sector Enterprises (SPSEs) for the 2022-23 financial year and mentioned its findings in a report, which was presented to the assembly on Tuesday.
Out of the 29 government companies and corporations audited by the CAG, seven entities incurred a loss of Rs 794.98 crore during the 2022-23 fiscal.
These seven public sector enterprises had incurred a loss of Rs 453.11 crore during the previous financial year 2021-22, the CAG said.
Out of the total loss of Rs 794.98 crore, the loss of Rs 788.73 crore was mainly due to two enterprises -- GRIDCO Limited (Rs 778.18 crore) and Odisha State Road Transport Corporation (Rs 10.55 crore), it said.
The other loss-making SPSEs are Odisha Rail Infrastructure Development Limited, Odisha Tourism Development Corporation Limited, Kalinga Studios Limited, Odisha Sports Development and Promotion Company Limited and GEDCOL SAIL Power Corporation Limited, the report said.
The CAG also found several loopholes in the state PSU, Odisha Mining Corporation (OMC).
The OMC has 36 mining leases as of March 2025, of which 18 are operational, while the remaining 18 have been inactive for several years.
The audit found that OMC had paid a penalty of Rs 3,761.88 crore for producing 29.47 million metric tonnes (MMT) during 2017-22, exceeding the quantities permitted under environmental and forest clearances.
It also noted that OMC paid Rs 602.27 crore for the production of 5.56 MMT of minerals during 2018-23, exceeding the quantities permitted under the consent to operate.
The state PSU extended an inter-corporate loan of Rs 3,211.71 crore to various entities without any policy for undertaking such financial risks. Of this, an amount of Rs 947.80 crore has already been defaulted on by IDCOL, it said.
To improve production levels in terms of quantity and quality, the OMC was executing six capital projects with an investment of Rs 5,495.90 crore. Of these, only two were completed, and the others were still in progress, the CAG noted.
The auditor also found deficiencies in contract management for the raising of ore, its uneconomic disposal, and deficiencies in its stacking.
The CAG recommended that the government direct the OMC to take measures to effectively manage the operations of its mining leases, ensure the timely surrender of leases, and avoid unwarranted extensions that lead to unnecessary expenditure.