21 state enterprises inactive, ₹4,039.91 crore losses in Andhra Pradesh

This audit examined the functioning and financial performance of 124 State Public Sector Enterprises (SPSEs) in Andhra Pradesh, as well as the compliance of infrastructure development by the Andhra Pradesh Tourism Development Corporation Limited (APTDCL) and bus procurement by the Transport, Roads & Building Department, for the period ended March 2023.

Who it concerns: Government of Andhra Pradesh, specifically State Public Sector Enterprises (SPSEs), the Andhra Pradesh Tourism Development Corporation Limited (APTDCL), and the Transport, Roads & Building Department.

What the auditor found

• 90 working SPSEs had a backlog of 342 accounts with arrears ranging from one to 17 years.
• Five loss-making SPSEs had accumulated losses of ₹4,039.91 crore as of March 31, 2023.
• CAG issued comments highlighting inaccuracies in financial statements impacting profitability by ₹139.32 crore and assets/liabilities by ₹1,207.66 crore.
• ₹4.79 crore of Government of India funds incurred by APTDCL remained unfruitful due to the State Government's failure to release its proportionate share.
• Assets worth ₹33.68 crore created under the Swadesh Darshan Scheme were not made operational, leading to idling and deterioration.
• APTDCL failed to realize dues of ₹38.46 crore from services rendered, lease rentals, and other sources.
• Premature sale of midi buses procured by the Andhra Pradesh State Road Transport Corporation resulted in a loss of ₹4.27 crore.
• Recommendations include expediting liquidation of 21 inactive SPSEs, ensuring timely finalization of accounts, and conducting feasibility studies before creating new tourism assets.

Also in the document

• CAG found that 21 SPSEs were inactive, effectively ceasing operations or undergoing liquidation.
• CAG noted that APTDCL constructed properties without feasibility studies or detailed project reports, causing idling of assets.
• CAG reported that the procurement of midi buses was made despite operational deficiencies reported by a Technical Committee, endangering passenger lives and leading to frequent breakdowns.